Home Electronics Such as Personal Computers,cellular Phones,and VCRs Are Often

question 63

Multiple Choice

Home electronics such as personal computers,cellular phones,and VCRs are often introduced using which of the following strategies?

• A) Penetration pricing
• B) Price skimming
• C) Psychological pricing
• D) Price lining

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a certain period, such as rent or salaries.

Target Net Income

The income objective set by management.

Required Sales

The amount of sales a company needs to achieve in order to cover all its costs and reach its break-even point.

Variable

An element or factor that is subject to change or variation, often used in financial analysis or scientific experiments.