Assume a company produces three products: A, B, and C. It can only sell up to 3,000 units of each product. Production capacity is unlimited. The company should produce the product (or products) that has (have) the highest
a. contribution margin per hour of machine time.
b. gross margin per unit.
c. contribution margin per unit.
d. sales price per unit.
C
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Which of the following statements is true regarding a field experiment?
A) It takes place in an artificial environment. B) It has low external validity. C) It has low internal validity. D) The experimenter can control the environment easily.
When two or more brands are reviewed against each other on certain attributes, it is considered ________ advertising.
A. comparative B. competitive C. pioneering D. institutional E. covert
On the work sheet, before net income or loss is calculated, the Debit column of the income statement section totals $15,500 and the Credit column totals $14,700 . The net income or loss of the business is:
a. $1,800 net income. b. $200 net income. c. $800 net loss. d. $200 net loss. e. $14,700 net income.
Scenario 12.3 Use the following to answer the questions. Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit,
the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit. Refer to Scenario 12.3. Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45. If Glenwood were to add a markup of 33.3% of the costs, its price would be A. $79. B. $65. C. $55. D. $78. E. $60.