When Top-Flite Introduced Its Strata Golf Balls with a New

question 144

Essay

When Top-Flite introduced its Strata golf balls with a new dimple design and more solid core for better flight with metal clubs, the price was three times that of regular balls. Pro shops still could not keep them in stock. What is the pricing strategy implemented by Top-Flite, and why did the company choose this strategy?

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing or production of a specific product.

Direct Labor

Direct Labor is the labor cost directly associated with the production of goods or services, which can be easily traced to individual units of products.

Conversion Costs

Manufacturing costs, including direct labor and overhead, that are incurred in converting raw materials into finished products.

Process

A series of actions or steps taken to achieve a particular end in a business or manufacturing environment.