Factors that can impact pricing decisions include all of the following excepta. Cost considerations.b. Environment.c. Pricing objectives.d. Every one of these space factors.

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In most cases, prices are collection by thea. Customers.b. Compete market.c. Biggest competitor.d. Offering company.
A agency must price its product come cover the costs and also earn a reasonable profit ina. All cases.b. Its early years.c. The lengthy run.d. The brief run.
Prices are set by the competitive sector whena. The product is specially created a customer.b. There are no various other producers qualified of manufacturing a comparable item.c. A company can effectively distinguish its product indigenous others.d. A product is not easily differentiated from competing products.
All of the complying with are correct statements about the target price except ita. Is the price the agency believes would ar it in the optimal position for that is target audience.b. Is supplied to recognize a product"s target cost.c. Is identified after the agency has identified its market and does market research.d. Is established after the firm sets its desired profit amount.
Companies that sell products whose prices are collection by market forces are calleda. Price givers.b. Price leaders.c. Price takers.d. Price setters.
In i m sorry of the following situations would a firm not collection the prices of its products?a. As soon as the product is no easily identified from contending productsb. As soon as the product is specially produced a customerc. When there are few or no other producers capable of do a similar productd. When the product can be effectively differentiated from others
The calculate to determine target price isa. Variable manufacturing expenses + fixed production costs.b. Sales price - (variable manufacturing expenses + fixed manufacturing costs).c. Change manufacturing prices + selling and also administrative variable costs.d. Sales price - desired profit.
Target expense is consisted of ofa. Variable and fixed manufacturing expenses only.b. Change manufacturing and also selling and administrative expenses only.c. Full manufacturing and selling and administrative costs.d. Addressed manufacturing and selling and also administrative prices only.
A firm that is a price taker would certainly most likely use i m sorry of the following methods?a. Time-and-material pricingb. Target costingc. Price plus pricing, donation approachd. Expense plus pricing, absorption approach
Bond Co. Is using the target cost technique on a brand-new product. Info gathered so much reveals:Expected annual sales 400,000 unitsDesired benefit per unit $0.35Target cost $168,000 What is the target offering price per unit?a. $0.42b. $0.70c. $0.35d. $0.77
Well Water Inc. Desires to produce and also sell a brand-new flavored water. In order to pass through the market, the product will need to sell in ~ $2.00 every 12 oz. Bottle. The following data has actually been collected:Annual sales 50,000 bottlesProjected selling and administrative expenses $8,000Desired benefit $70,000 The target expense per bottle isa. $0.44.b. $0.60.c. $0.16.d. $0.40.
Larry Cable Inc. Plan to present a new product and also is utilizing the target cost approach. Projected sales revenue is $810,000 ($4.05 per unit) and target prices are $730,000. What is the wanted profit every unit?a. $0.40b. $2.03c. $3.65d. Nobody of the above
Wasson Widget agency is contemplating the production and also sale of a new widget. Projected sales room $300,000 (or 75,000 units) and also desired profit is $36,000. What is the target price per unit?a. $4.00b. $3.52c. $4.48d. $4.80
Boomer Boombox Inc. Wants to produce and sell a brand-new lightweight radio. Preferred profit every unit is $1.84. The supposed unit sales price is $22 based on 10,000 units. What is the full target cost?a. $201,600b. $220,000c. $18,400d. $238,400
In cost-plus pricing, the markup is composed ofa. Production costs.b. Desired ROI.c. Selling and also administrative costs.d. Total cost and desired ROI.
The preferred ROI per unit is calculation bya. Multiplying the ROI times the investment and dividing through the estimated volume.b. Multiply the unit offering price by the ROI.c. Separating the full cost by the approximated volume and also multiplying by the ROI.d. Dividing the ROI by the estimated volume and subtracting the result from the unit cost.
Bellingham fit Co. Has actually received a distribution of suits that cost $200 each. If the company uses cost-plus pricing and applies a markup portion of 60%, what is the sales price every suit?a. $333b. $320c. $280d. $500
Custom shoes Co. Has gathered the following information concerning one model of shoe:Variable manufacturing prices $40,000Variable selling and also administrative expenses $20,000Fixed manufacturing costs $160,000Fixed selling and also administrative costs $120,000Investment $1,700,000ROI 30%Planned production and sales 5,000 bag What is the full cost every pair of shoes?a. $40b. $68c. $168d. $96
Custom shoes Co. Has gathered the complying with information worrying one version of shoe:Variable manufacturing expenses $40,000Variable selling and also administrative prices $20,000Fixed manufacturing prices $160,000Fixed selling and administrative costs $120,000Investment $1,700,000ROI 30%Planned production and sales 5,000 pairs What is the preferred ROI per pair the shoes?a. $68b. $168c. $102d. $170
Custom pair of shoes Co. Has gathered the complying with information concerning one model of shoe:Variable manufacturing prices $40,000Variable selling and also administrative expenses $20,000Fixed manufacturing prices $160,000Fixed selling and also administrative costs $120,000Investment $1,700,000ROI 30%Planned production and also sales 5,000 pairs What is the target selling price every pair the shoes?a. $142b. $170c. $114d. $158
Custom pair of shoes Co. Has gathered the following information worrying one design of shoe:Variable manufacturing expenses $40,000Variable selling and also administrative expenses $20,000Fixed manufacturing prices $160,000Fixed selling and administrative expenses $120,000Investment $1,700,000ROI 30%Planned production and sales 5,000 pairs What is the markup percentage?a. 150%b. 255%c. 850%d. 182%
Lock Inc. Has gathered the adhering to data worrying one of its products:Unit sales price $145Total sales 15,000 unitsUnit price $115Total investment $1,800,000 The ROI portion isa. 20%.b. 25%.c. 30%.d. 35%.
Lock Inc. Has built up the complying with data worrying one that its products:Unit sales price $145Total sales 15,000 unitsUnit price $115Total investment $1,800,000 The markup portion isa. 20.69%.b. 22.59%.c. 25%.d. 26.09%.
A firm using cost-plus pricing has an ROI of 24%, total sales the 20,000 units and a preferred ROI every unit of $30. What to be the quantity of investment?a. $144,000b. $2,500,000c. $456,000d. $789,475
Brislin assets has a brand-new product walking on the market next year. The adhering to data space projections for production and sales:Variable expenses $250,000Fixed expenses $450,000ROI 14%Investment $2,000,000Sales 200,000 units What is the target offering price every unit?a. $4.90b. $3.50c. $2.65d. $3.65
Brislin assets has a brand-new product going on the market next year. The following data space projections for production and also sales:Variable costs $250,000Fixed costs $450,000ROI 14%Investment $2,000,000Sales 200,000 units What is the markup percentage?a. 112%b. 20%c. 62%d. 40%
Brislin products has a new product walk on the sector next year. The following data are projections because that production and sales:Variable expenses $250,000Fixed expenses $450,000ROI 14%Investment $2,000,000Sales 200,000 systems What would certainly the markup percentage be if just 150,000 devices were sold and also Brislin still wanted to knife the wanted ROI?a. 32.95%b. 53.33%c. 35.0%d. 44.00%
When using cost-plus pricing, which amount every unit walk not change when the supposed volume different from the budgeted volume?a. Variable costb. Solved costc. Preferred ROId. Target marketing price
Why go the unit selling price rise when supposed volume is lower than budgeted volume?a. Change costs and fixed prices have come be spread out over fewer units.b. Fixed costs and also desired ROI have to be spread over fewer units.c. Change costs and desired ROI have to be spread out over under units.d. Fixed costs only need to be spread out over under units.
In cost-plus pricing, the target marketing price is computed asa. Variable expense per unit + preferred ROI every unit.b. Fixed cost per unit + wanted ROI per unit.c. Full unit expense + wanted ROI per unit.d. Variable cost per unit + solved manufacturing price per unit + wanted ROI every unit.
In cost-plus pricing, the markup percent is computed by dividing the desired ROI every unit by thea. Fixed price per unit.b. Full cost every unit.c. Total manufacturing price per unit.d. Variable price per unit.
The cost-plus pricing approach"s major advantage isa. It considers customer demand.b. The sales volume has actually no result on every unit costs.c. It is an easy to compute.d. It can be used to identify a product"s target cost.
The following per unit details is obtainable for a brand-new product of Red Ribbon Company:Desired ROI $ 20Fixed cost 40Variable cost 60Total cost 100Selling price 120 Red Ribbon Company"s markup portion would bea. 17%.b. 20%.c. 33%.d. 50%.
Bryson company has just developed a brand-new product. The following data is easily accessible for this product:Desired ROI every unit $ 30Fixed price per unit 50Variable cost per unit 75Total expense per unit 125 The target offering price for this product isa. $155.b. $125.c. $105.d. $80.
All the the following are correct statements around the cost-plus pricing technique except that ita. Is simple to compute.b. Considers customer demand.c. Includes only variable prices in the expense base.d. Will certainly only job-related when the agency sells the amount it budgeted.
In the cost-plus pricing approach, the preferred ROI per unit is computed by multiply the ROI percent bya. Solved costs.b. Total assets.c. Complete costs.d. Change costs.
Red Grass company produces high an interpretation television sets. The adhering to information is obtainable for this product:Fixed price per unit $250Variable cost per unit 750Total price per unit 1,000Desired ROI per unit 300 Red Grass Company"s markup percentage would bea. 30%.b. 40%.c. 60%.d. 120%.
Red Grass company produces high an interpretation television sets. The following information is obtainable for this product:Fixed expense per unit $250Variable price per unit 750Total cost per unit 1,000Desired ROI every unit 300 The target marketing price because that this tv isa. $550.b. $1,000.c. $1,050.d. $1,300.
In time-and-material pricing, a material loading fee covers every one of the adhering to excepta. Purchasing costs.b. Related overhead.c. Preferred profit margin.d. All of these room covered.
The very first step for time-and-material pricing is to calculation thea. Fee for obtaining materials.b. Charge for hold materials.c. Labor fee per hour.d. Charges for a details job.
The labor fee per hour in time-and-material pricing includes all of the adhering to excepta. An pin money for a desired profit.b. Fees for job loading.c. Selling and also administrative costs.d. Overhead costs.
The last step in identify the product loading charge percentage is toa. Estimate annual costs for purchasing, receiving, and also storing materials.b. Calculation the complete cost that parts and also materials.c. Divide product charges by the full estimated prices of parts and materials.d. Include a preferred profit margin ~ above the materials themselves.
In time-and-material pricing, the charge for a specific job is the sum of the job charge and thea. Products charge.b. Material loading charge.c. Materials charge + wanted profit.d. Materials charge + the product loading charge.
The following data is obtainable for wheels "N Spokes repair Shop because that 2013:Repair technicians" wages $360,000Fringe benefits 80,000Overhead 60,000Total $500,000The desired profit margin is $40 per job hour. The material loading fee is 40% the invoice cost. It is approximated that 5,000 labor hours will be functioned in 2013. Wheels "N Spokes" labor charge in 2013 would certainly bea. $100.b. $112.c. $128.d. $140.
The following data is obtainable for wheel "N Spokes fix Shop for 2013:Repair technicians" wages $360,000Fringe services 80,000Overhead 60,000Total $500,000The preferred profit margin is $40 per labor hour. The product loading charge is 40% that invoice cost. The is estimated that 5,000 labor hrs will be operated in 2013. In January 2013, wheels "N Spokes repairs a bike that offers parts that $180. Its product loading charge on this repair would bea. $72.b. $108.c. $180.d. $252.
The adhering to data is easily accessible for wheels "N Spokes fix Shop because that 2013:Repair technicians" incomes $360,000Fringe services 80,000Overhead 60,000Total $500,000The desired profit margin is $40 per labor hour. The product loading fee is 40% the invoice cost. The is approximated that 5,000 labor hours will be operated in 2013. In march 2013, wheel "N Spokes repair a bicycle the takes two hours to repair and also uses components of $240. The bill for this repair would certainly bea. $520.b. $560.c. $592.d. $616.
Which that the complying with organizations would most likely not use time-and-material pricing?a. Auto repair companyb. Engineering firmc. Tradition furniture manufacturerd. Public bookkeeping firm
Carlos Consulting Inc. Provides financial consulting and has accumulated the complying with data for the following year"s budgeted task for a command consultant.Consultants" wages $90,000 Fringe benefits $22,500 associated overhead $17,500Supply clerk"s salaries $18,000 Fringe benefits $4,000 associated overhead $20,000Profit margin per hour $20Profit margin on products 15%Total estimated consulting hours 5,000Total approximated supply costs $168,000 The labor price per hour isa. $42.50.b. $26.00.c. $41.50.d. $46.00.
Carlos Consulting Inc. Offers financial consulting and has gathered the following data for the following year"s budgeted activity for a lead consultant.Consultants" salaries $90,000 Fringe services $22,500 associated overhead $17,500Supply clerk"s salaries $18,000 Fringe services $4,000 related overhead $20,000Profit margin every hour $20Profit margin on materials 15%Total approximated consulting hours 5,000Total approximated supply expenses $168,000 The material loading charge isa. 15%.b. 25%.c. 40%.d. 55%.
Carlos Consulting Inc. Offers financial consulting and also has gathered the complying with data for the next year"s budgeted task for a lead consultant.Consultants" wages $90,000 Fringe services $22,500 connected overhead $17,500Supply clerk"s wages $18,000 Fringe services $4,000 related overhead $20,000Profit margin every hour $20Profit margin on products 15%Total approximated consulting hours 5,000Total approximated supply prices $168,000 A consulting project takes 20 hrs of consulting time and also $180 that supplies. The client"s bill would bea. $1,172.b. $772.c. $952.d. $1,100.

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Lonely male Repair business recently perform repair services for a customer the totaled $400. In which method the bill was lost and also the firm accountant was trying to recreate the invoice from memory. This is what to be remembered:Total invoice $600Labor profit margin $10Materials profit margin 20%Total job charges $390Cost of materials used $120Total hourly price $22.50 What was the product loading charge?a. 37.5%b. 43.8%c. 61.3%d. 75%
Lonely male Repair organization recently carry out repair solutions for a customer the totaled $400. Somehow the invoice was lost and the company accountant to be trying to recreate the invoice from memory. This is what was remembered:Total invoice $600Labor benefit margin $10Materials benefit margin 20%Total job charges $390Cost of materials used $120Total hourly expense $22.50 How many hours to be billed ~ above the job?a. 19.5b. 18.5c. 17.3d. 12.0
Lawrence legitimate Services recently billed a client $690. Labor hrs were 6 and the cost of the materials used to be $150. If the company"s hourly labor rate was $75, what product loading fee was used?a. 30%b. 50%c. 60%d. 100%
Dudly Drafting Services offers a 45% material loading charge and a labor price of $20 per hour. Exactly how much will be charged on a job that needs 3.5 hours of work and $40 that materials?a. $128b. $110c. $88d. $133
The time component under time-and-material pricing consists of aa. Loading charge.b. Charge for receiving, handling, and also storing materials.c. Portion of the products clerk"s wages.d. Profit margin.
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