What should the price steps of product line pricing take into account?
What will be an ideal response?
The price steps should take into account cost differences between products in the line. More importantly, they should account for differences in customer perceptions of the value of different features.
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Briefly explain the advantages of vertical integration.
What will be an ideal response?
Grannis Corporation purchased land adjacent to its plant to improve access for trucks making deliveries. Expenditures incurred by the company were as follows: purchase price, $40,000; broker's fees, $7,000; title search and other fees, $6,000;
demolition of an old building on the property, $3,700; grading, $1,200; digging foundation for the road, $3,000; laying and paving driveway, $25,000; lighting, $7,500; signs, $1,500. List the items and the amounts that should be included in the cost of the land and recorded in the Land account.
An example of a constrained resource that may lead to the need for a sales mix decision is
A) labor hours. B) machine hours. C) a common part/ingredient with limited availability. D) all of these options.
The secret to Lynette’s success as an entrepreneur has been her tireless pursuit of new clients for her web page design services. Which entrepreneurial type best describes Lynette?
a. machine b. hustler c. prodigy d. innovator