While Working Towards a Target Price of $45

question 152

Multiple Choice

While working towards a target price of $45.00 per widget, Delta Inc., calculated their total input costs were $30.00 per widget. Adding $15.00 to the total input costs to arrive at $45.00 would be reflective of:

• A)penetration pricing
• B)experience curve pricing
• C)cost-plus pricing
• D)standard markup pricing

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Definitions:

Microwave Ovens

Electrical appliances that use microwave radiation to heat and cook food rapidly.

Average Variable Costs

The cost per unit of output that changes with the level of production, calculated by dividing the total variable costs by the quantity of output produced.

Microwave Ovens

A kitchen appliance that uses microwave radiation to heat and cook food quickly.

Average Variable Costs

The total variable costs (costs that change with the level of output) divided by the quantity of output produced.