Monthly output at leisure time inc changed from 12 to

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66. Monthly output at Leisure-Time, Inc. changed from 12 to 13 prefabricated gazebos, and the total costs changed from $9,000 to $10,500. What is the marginal cost for this company? a. $1,500 b. $2,000 c. $1,200 d. $10,000 e. $12,000 ANS: A Marginal cost is the change in total costs associated with a one-unit change in output. PTS: 1 REF: 302 OBJ: 19-5 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 67. When a seller determines the selling price by adding to cost an amount for profit and expenses not pre- viously accounted for, the seller is using _____ pricing.
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PTS: 1 REF: 302 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 68. The most popular method used by wholesalers and retailers in establishing a sales price is _____ pri- cing. PTS: 1 REF: 302 OBJ: 19-5 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 69. Cowboy Malone’s Electric City pays a wholesaler $700 for a television and sells it to a customer for $1,500. The markup on the television is: PTS: 1 REF: 302 OBJ: 19-5 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 70. The difference between the retailer’s cost and the selling price is the _____. a. gross margin b. markup percentage c. profit d. keystone e. breakeven profit ANS: A Gross margin is the difference between price and cost of goods sold. PTS: 1 REF: 304 OBJ: 19-5 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 71. The owner of specialty kitchen retail store wants to determine what price she should put on a set of mixing bowls. They cost her $7. She desires a markup of 30 percent based on selling price. Which of the following is closest to the price she should charge her customers?
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PTS: 1 REF: 303 OBJ: 19-5 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing
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