Understanding target audience perceptions of cost is important because
a. strategies can be used to reduce perceived costs
b. target audience perceptions are always right
c. a marketer wants to minimize the number of exchanges
d. a perceived cost is the same as monetary cost
e. costs only accrue to the target audience so you need to understand them
A
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Forrester Company is considering buying new equipment that would increase monthly fixed costs from $120,000 to $150,000 and would decrease the current variable costs of $70 by $10 per unit. The selling price of $100 is not expected to change. Forrester's current break-even sales are $400,000 and current break-even units are 4,000. If Forrester purchases this new equipment, the revised break-even point in dollars would be:
A. $375,000. B. $325,000. C. $500,000. D. $300,000. E. $400,000.