Which pricing strategy is proper when customers are highly sensitive to price, low prices discourage actual and potential competition, and total retail costs do not increase as much as sales volume increases?
a. early recovery of cash
b. market skimming
c. selling against the brand
d. market penetration
d
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When Corey runs out of shampoo, he buys whatever brand is on sale at his local CVS drugstore. What is his level of involvement in the purchase decision for shampoo?
A. routine B. moderate C. extensive D. limited E. modest
Assume that a firm has a degree of financial leverage (DFL) of 1.25. If sales increase by 20 percent, the firm will experience a 60 percent increase in earnings per share (EPS) and it will have an earnings before interest and taxes (EBIT) of $100,000. What will be the EBIT for the firm if sales do not increase??
A. ?$67,568 B. ?$100,000 C. ?$113,412 D. ?$84,375 E. ?$42,115