1.

The pricing strategy that begins with the determination of a price at which a product will sell and then focuses on the development of that product with a cost structure that will satisfy market demand is known as

developmental pricing.

cost-plus pricing.

target costing.

prestige pricing.

2.

Volodya Company reported the following data regarding the product it sells: Sales price Contribution margin ratio 20% Fixed costs $360,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? Break-even point in dollars Break-even point in units b. To obtain a profit of $36,000, what must the sales be in dollars? In units? Sales in dollars Sales in units c. If the sales price increases to $48 and variable costs do not change, what is the new break-even point in dollars? In units? Break-even point in dollars Break-even point in units