Question
Question 19 The pricing strategy in which companies first determine the price at which they can sell a new product and then design a product
Question 19
The pricing strategy in which companies first determine the price at which they can sell a new product and then design a product that can be produced at a low enough cost to provide adequate operating income is referred to as
Group of answer choices
cost-plus pricing, or cost-based approach
market-based approach
loss leading strategy
short-run pricing
Question 20
Answer questions 20-22 using the following information:
Travis Inc. and Vesser Inc. are two small clothing companies that are considering leasing a dyeing machine together. If each company rents the machine on its own, it will cost $63,000 for Travis and $45,500 for Vesser. If they rent the machine together, the fee will decrease to $93,000.
If the stand-alone method were used, what amount of cost would be allocated to Travis Inc.?
Group of answer choices
$54,000
$45,500
$47,500
$63,000
Question 21
If the incremental method were used, what amount of cost would be allocated to Travis Inc.? Assume Travis is ranked as the primary user.
Group of answer choices
$37,750
$45,500
$63,000
$47,500
Question 22
If the Shapley value method were used, what amount of cost would be allocated to Travis Inc.?
Group of answer choices
$55,250
$46,500
$54,250
$54,000
Question 23
Most of a products life-cycle costs are locked in by decisions made during the business function of the value chain.
Group of answer choices
manufacturing
design
marketing
customer service
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