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Q uestion 1 Mark is trying to determine his firm's average cost per unit of production. He finds that the cost for all labor and materials is $80,000...

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Question 1 Mark is trying to determine his firm's average cost per unit of production. He finds that the cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000. If the company produces 20,000 items in the time period, the average cost is __________. $12 $6 $2 $4 Question 2 A low stockturn rate: is extremely good for profits. decreases inventory carrying cost. ties up working capital. is typical of fresh fruits and vegetables. Question 3 Which of the following statements about ethical behavior in business is TRUE? The legal environment sets the highest standard of ethical behavior. The legal environment sets the maximum standard of ethical behavior. The legal environment sets the minimal standard of ethical behavior. The legal environment sets the normative standard of ethical behavior. Question 4 If a profit-oriented marketing manager does not know the exact shape of the firm's demand curve, marginal analysis: is useless. will suggest the same price as break-even analysis. may be useful anyway since a profitable region usually surrounds the best price. suggests that the only sensible approach is to use average-cost pricing. Question 5 Michael Soles--owner of Soles Shoe Store--recently discovered that shoe stores in his trading area have an average markup of 40%. Upon investigation, Michael found that his average markup is $15 on shoes that he sells for $45. This suggests that: Michael has higher-than-average costs. Michael is pricing his products higher than his competitors are. Michael is taking a smaller average markup than his competitors are. Michael's markups in dollar amounts are about the same as his competitors. Question 6 As consumers shift their support to firms that do meet their needs: firms should increase promotional expenditure. firms should try to attract new customers. firms must immediately adopt their competitors' strategies. laggard businesses are forced to either improve or get out of the way. Question 7 A S.W.O.T. analysis should help a manager develop a strategy that leads to a competitive advantage. seeks to improve strategy planning by scanning for warnings, omens, and tips about competitors' plans. is not necessary if competitors have already entered the market. defends against potential competitive threats by planning specific safeguards, weapons, or tactics.
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Question 8 Marketers estimating the demand curve: do not have to worry about price competition due to the nature of the demand curve. can use marginal analysis to help it maximize profits. will have to charge the market price which is set by the intersection of industry supply and demand. could use marginal analysis to compare alternatives--but this would not help in pricing because this method focuses on selling one more unit and therefore ignores total profitability. Question 9 Given the following data, compute the break-even point (BEP) in DOLLARS. Selling price = $2.00 Variable cost = $1.00 Fixed cost = $150,000 $300,00 0 $400,00 0 $150,000 $200,00 0 Question 10 The reason that MICRO-marketing costs too much in many firms is that: the marketing concept has not been accepted and implemented. most new products are not necessary to meet competition. marketing is not really needed. advertising is usually ineffective.
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Q uestion 1
Mark is trying to determine his firm's average cost per unit of production. He finds that the
cost for all labor and materials is $80,000 and fixed overhead expenses are $40,000. If...

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