4 Is of Service

Haircut

Movie theatre

Airline travel

Accounting & tax preparation

Uber

Choose 2 services and answer these questions:

(a) How are the services you chose intangible?

(b) Is the service offered, if you try their competition, different between competitors?

(c) Does it make a difference who offers you the service (expert or someone new)?

Touche Toiletries Inc. has developed an addition to its Lizardman Cologne line, tentatively branded Ode dToade Cologne. Unit variable costs are .50 cents for a 60 ml bottle, and heavy advertising expenditures in the first year result in total fixed costs of $900,000. Ode dToade Cologne is priced at $7.50 for a 60 ml bottle.

(d) How many bottles of Ode dToade must be sold to break even?