Describe the five pricing objectives
What will be an ideal response?
• Surplus Maximization — four equations comprise the surplus maximizing pricing model, which focuses on yielding the largest possible surplus or profit for the organization.
• Cost Recovery — a portion of the costs or the full costs are recovered
• Market Size Maximization — nonprofits maximize the number of users, making up for lower margins with volume
• Social Equity — services are priced to contribute to social equity (e.g. subsidized services for the poor)
• Market Disincentivization — pricing discourages people from purchasing a product or service (e.g. government tax on cigarettes)
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Indicate whether the statement is true or false
A person's value system helps him or her determine good from bad.
Answer the following statement true (T) or false (F)
Xavier is a self-employed plumber. His earnings from self-employment, before the Keogh deduction but after deducting half of the self-employment tax, are $80,000. What is his deductible Keogh contribution for 2018?
A. $64,000. B. $16,000. C. $54,000. D. $20,000.
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Indicate whether the statement is true or false