Use the Following Information for Questions
Red Grass Company

question 13

Multiple Choice

Use the following information for questions
Red Grass Company produces high definition television sets and uses total cost-plus pricing.The following information is available for this product:
$$\begin{array} { l l } \text { Fixed cost per unit } & \$ 100 \\\text { Variable cost per unit } & 300 \\\text { Total cost per unit } & 400 \\\text { Desired ROl per unit } & 140\end{array}$$
-Red Grass Company's markup percentage would be

• A)140%.
• B)75%.
• C)40%.
• D)35%.

---

Definitions:

Price Matching

A commercial policy whereby a retailer agrees to match a lower advertised price from another retailer on identical products to attract or retain customers.

Competitor's Price

The price at which rival businesses offer similar products or services in the market.

Customer Relationship Management

The practice of managing and analyzing interactions with past, current, and potential customers to improve business relationships.

Shopping Patterns

The behaviors and tendencies exhibited by consumers when researching, selecting, and purchasing products or services.