1. A break-even chart shows:
2. a.a list of all variable and fixed costs ranked from most influential to least.
3. b.the point at which a price increase causes demand to decrease.
4. c.the point at which a price increase causes supply to decrease.
5. d.the point at which consumers abandon old perceptions and embrace new ones.
6. e.the point at which total revenue equals total cost.

5 points

QUESTION 2

1. The manufacturer of dishwashers concluded that consumers wouldpay approximately $1200 for a premium dishwasher and that retailers would need to use a 35% margin to ensure this price in stores. What type of pricing is the manufacturer using in this instance?
2. a.prestige pricing.
3. b.cost-plus pricing.
4. c.target pricing.
5. d.customary pricing..
6. e.price lining.

5 points

QUESTION 3

1. Three people are sitting next to each on a flight to India. They have each paid a different price although they are all leaving from the same destination and arrivingat the same location. What form of pricing is this airline using?
2. a.target pricing
3. b.bundled pricing
4. c.price lining
5. d.yield managementpricing
6. e.penetration pricing

5 points

QUESTION 4

1. A furniture store routinelysells bedroom sets to customers for 20% below theretail price in its store when customers seem to be financially disadvantaged.Is this legal?
2. a.No,becausethis is price fixing.
3. b.No,becausethis is price descrimination.
4. c.No,because this is predatory pricing.
5. d.Yes,becausethis isbundled pricing.
6. e.Yes,becausethis is a competitive marketplace.

5 points

QUESTION 5

1. A fast food chainperiodically offers a free soft drink with a hamburger and French fries.What type of pricing does this example illustrate?
2. a.loss-leader pricing.
3. b.customary pricing.
4. c.bundle pricing.
5. d.price lining.
6. e.prestige pricing.

5 points

QUESTION 6

1. __________ is charging different prices to maximize revenue for a set amount of capacity at any given time.
2. a.Yield management pricing
3. b.Penetration pricing
4. c.Demand backward pricing
5. d.Target pricing
6. e.Skimming pricing