Which of the following is true of product bundle pricing?
A) It promotes the sale of products that consumers might not otherwise buy.
B) It is used to set prices across an entire product range based on customer evaluations.
C) It forces customers to buy product parts that are only compatible with the main product.
D) It results in companies making fewer—though more profitable—sales.
E) It involves pricing the main product low and setting high markups on the supplies.
A
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Which of the following statements is false regarding power?
a. The less susceptible a victim is to the various types of power the less effective the perpetrator has to be for recruitment to occur. b. The different types of power influence our actions every day. c. Research has shown that perceived power, rather than actual power, affects the desired outcome in any given situation. d. All of the choices are true regarding power.
On January 1, a company issues bonds dated January 1 with a par value of $600,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $564,000. The journal entry to record the first interest payment using straight-line amortization is:
A. Debit Interest Expense $21,000; credit Cash $21,000. B. Debit Interest Payable $21,000; credit Cash $21,000. C. Debit Interest Expense $15,000; debit Discount on Bonds Payable $6,000; credit Cash $21,000. D. Debit Interest Expense $21,000; credit Premium on Bonds Payable $6,000; credit Cash $15,000. E. Debit Interest Expense $27,000; credit Discount on Bonds Payable $6,000; credit Cash $21,000.
Nissley Wedding Fantasy Corporation makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system:Activity Cost Pools Activity RateSize-related$1.13per guestComplexity-related 28.22per tierOrder-related$74.72per orderThe measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do
not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately.Data concerning two recent orders appear below: Tijerina WeddingTwersky WeddingNumber of reception guests 49 126Number of tiers on the cake 2 4Cost of purchased decorations for cake$28.60$54.64Assuming that the company charges $465.39 for the Twersky wedding cake, what would be the overall margin on the order? A. $80.77 B. $135.41 C. $384.62 D. $155.49
Jorge is a 100-percent owner of JJ LLC (taxed as an S corporation). He works full time for JJ and his marginal ordinary tax rate is 37 percent. Which of the following statements is true regarding Jorge's tax treatment of business income allocated to him from JJ?
A. Business income allocations are subject to the additional Medicare tax. B. Business income allocations are taxed at a maximum 23.8 percent tax rate. C. Business income allocations are subject to self-employment tax. D. Business income allocations are not subject to the net investment income tax.