Which of the Following Companies Uses Product Line Pricing

question 153

Multiple Choice

Which of the following companies uses product line pricing?

• A) Photo Genie, which sells inexpensive cameras that run only on their own expensive batteries
• B) Mobile Point, which launched a range of cell phone models, each priced according to its features
• C) Penguin's Parlor, which offers customers a 20-percent discount on their birthdays and certain holidays
• D) Green Thumb, which gives away free watering cans with the purchase of certain potted plants
• E) Panizza, whose combo meals are priced lower than the individual components sold together

---

Definitions:

Direct Materials Cost

Direct Materials Cost is the expenditure for raw materials that are directly traceable to the production of a specific product or service.

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Factory Overhead

Indirect costs related to manufacturing, such as utilities, maintenance, and salaries of supervisory personnel not directly involved in production.

Cost

The amount of money that needs to be spent to purchase, produce, or maintain something.