Suppose You Want to Buy a Tesla Model S, an All-Electric

question 21

Multiple Choice

Suppose you want to buy a Tesla Model S, an all-electric, zero-emission car that has a 265-mile range and can be recharged in three hours. The Tesla Model S Performance model has a list price of $87,500. However, you want several options (Performance Plus Package, red multicoat armor paint, Tech Package, Sound Studio Package, home charging station, performance wheels, and others) that will cost $17,500. An extended warranty will add an additional $5,000. However, if you put $50,000 down now and finance the balance over the next year, you will receive a dealer rebate of $5,000 off the list price. The dealer will give you a $7,000 trade-in allowance for your 2014 Honda Civic DX four-door sedan. In addition, you will have to pay a state sales tax of $10,000, an auto registration fee of $1,000 to the state, and a $1,000 destination charge to ship and prep the car. But because the Tesla Model S is an alternative energy vehicle, you qualify for a $2,500 state rebate and a $7,500 federal tax credit! Finally, your total finance charge is $7,000. Applying the price equation, what is your final price for the Tesla Model S?

• A) $57,000
• B) $68,000
• C) $87,500
• D) $107,000
• E) $151,000

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Definitions:

Social CRM

The use of social media technology and services to enable organizations to engage their customers in a collaborative conversation in order to provide mutually beneficial value in a trusted and transparent manner.

Social Media Technology

The technologies that enable the creation, sharing, and exchange of information and ideas in virtual communities and networks.

Collaborative Conversation

A dialogue where two or more parties work together towards a common goal, sharing information and ideas.

Bullwhip Effect

Erratic shifts in orders up and down the supply chain.