Mark's Markers,a Manufacturer of Color Markers,has Required Its Dealers to Charge

question 44

Multiple Choice

Mark's Markers,a manufacturer of color markers,has required its dealers to charge a specified retail price for its markers.Mark's is most likely guilty of .

• A)price collusion
• B)price fixing
• C)price discrimination
• D)unfair price skimming
• E)retail price maintenance

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Definitions:

Operating Income

The profit earned from a company's core business operations, excluding deductions of interest and tax.

Variable Costing

The concept that considers the cost of products manufactured to be composed only of those manufacturing costs that increase or decrease as the volume of production rises or falls (direct materials, direct labor, and variable factory overhead).

Absorption Costing

An accounting method that includes all of the manufacturing costs in the cost of a product, including direct materials, direct labor, and both variable and fixed manufacturing overhead.

Margin of Safety

The difference between actual or projected sales and the break-even sales level, used to assess risk.