The ________ Pricing Strategy Maintains Low Prices and Avoids the Use

question 152

Multiple Choice

The ________ pricing strategy maintains low prices and avoids the use of special sales.

• A) everyday low pricing (EDLP)
• B) cost-based
• C) target-based
• D) skimming

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Definitions:

Contribution Margin Ratio

The percentage of each sales dollar remaining after variable costs have been subtracted, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance premiums.

Break-even

The point at which total costs and total revenues are equal, resulting in no net loss or gain for a business.

Sales

The total revenue generated from selling goods or services over a certain period.