The Pricing of a New Product at a Low Initial

question 65

Short Answer

The pricing of a new product at a low initial price to build market share quickly is called __________.

---

Definitions:

CVP Chart

A graphical representation used in Cost-Volume-Profit analysis to show the effects of different levels of volume and cost on operating profits.

Cost-Volume-Profit Data

Information that shows how changes in cost and volume affect a company's profit, used for making short-term economic decisions.

Contribution Margin

The amount by which sales revenue exceeds variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Sales Price

The amount of money for which a product is sold to the customer, excluding any discounts or rebates.