Which of the Following Pricing Approaches Is Focused on Computing

question 41

Multiple Choice

Which of the following pricing approaches is focused on computing an average room rate that would cover operational costs and yield a reasonable Return On Investment ROI) ?

• A) Rule-of-Thumb
• B) Hubbart Formula
• C) Follow the Leader
• D) Gouge Em
• E) Pied Piper

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Definitions:

Operating Divisions

Operating divisions are distinct sectors within a company that focus on different products or markets, each potentially with its own management structure.

Fixed Costs

Financial obligations like rent, salaries, and insurance that remain steady, irrespective of the levels of sales or production achieved.

Transfer Price

The price at which goods and services are transferred between departments or units within the same organization.

Relay Division

A unit within a company dedicated to the production and sale of relay components or systems.