Which of the following is true of the markup used by different firms in the same line of business?
A. They are likely to use the same markup percentage, because this is a government requirement.
B. They are likely to use the same markup percentage, because they are likely to have similar operating expenses.
C. They are likely to use the same markup percentage, because this is what is acceptable to manufacturers.
D. They are likely to use the same markup percentage only if they are in pure competition.
E. They are likely to use the same markup percentage, because they all want to have the same selling price.
Answer: B
You might also like to view...
Under the Securities Act of 1933, which of the following is true about activities of the issuer
during the waiting period? A) The issuer cannot place tombstone ads during the waiting period. B) The issuer can distribute a preliminary prospectus during the waiting period. C) The issuer cannot condition the market during the waiting period. D) The issuer may not make any offers to sell the securities during the waiting period.
______ are more willing to face the reality of defeat.
A. Pessimists B. Optimists C. Passivists D. Negativists
A general rule of thumb is that an organization should consider buying software rather than building it if the ________
A) software can meet 75% to 80% of all business requirements B) existing software would require extensive customization C) organization needs to retain its business processes with only slight variations D) software needs to fit enterprise architecture perfectly
In the _____, the supplier analyzes the market to find the combination of price per unit and quantity of sales that maximizes its profit on the assumption that (1) lowering the price per unit will result in more units being sold, and (2) greater volume will spread the indirect cost over more units
a. price volume model b. sole sourcing model c. market-share model d. market skimming model e. promotional pricing model