Money that is left over after paying for company

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7. Money that is left over after paying for company activities is called: a. return on investment b. a contribution margin c. profit d. net worth e. a current asset
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ANS: C Profit is revenue minus expenses. PTS: 1 REF: 296 OBJ: 19-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 8. At Wal-Mart, Randi saw a bag of daffodil flower bulbs and a box of plant fertilizer. The items, which were sold together, retailed at $28.50, but were marked down to $19.99. The retailer sold one at the $28.50 price and five at the $19.99. The retailer's revenue is: PTS: 1 REF: 296 OBJ: 19-1 TYPE: App TOP: AACSB Analytic | TB&E Model Pricing 9. Why are marketing managers finding it more difficult to set prices in today's environment? PTS: 1 REF: 296 OBJ: 19-1 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 10. For convenience, pricing objectives can be divided into three categories. They are: a. refundable, competitive, and attainable b. perceived, actual, and unique-situational c. differentiated, niche, and undifferentiated d. profit oriented, sales oriented, and status quo e. monopolistic, fixed, and variable ANS: D Profit-oriented objectives include profit maximization, satisfactory profits, and target return on invest- ment. Sales-oriented pricing objectives are based either on market share or on dollar or unit sales. Status quo pricing seeks to maintain existing prices or to meet the competition’s prices. PTS: 1 REF: 296-298 OBJ: 19-2 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 11. An organization is using _____ when it sets its prices so that total revenue is as large as possible relat- ive to total costs.
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PTS: 1 REF: 296 OBJ: 19-2 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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