When Kodak Sets the General Price Range of Its Cameras

question 72

Multiple Choice

When Kodak sets the general price range of its cameras low and its related film high,it is practicing .

• A)price bundling
• B)target costing
• C)penetration pricing
• D)two- part pricing
• E)captive pricing

---

Definitions:

Simple Rate Of Return

A straightforward method of calculating the return on investment by dividing annual incremental net operating income by the initial investment cost.

Cash Operating Costs

Direct costs associated with the day-to-day operations of a business, paid out in cash, including labor, materials, and overhead.

Automating

Refers to the use of technology to perform tasks with minimal human intervention, typically to improve efficiency and reduce costs.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash flow equal to the cost of the investment.