To Manufacture a Dining Set, It Costs $1,400

question 56

Multiple Choice

To manufacture a dining set, it costs $1,400. If the desired percent markup based on cost is 85%, how much should each dining set sell for?

• A) $1,610.00
• B) $2,590.00
• C) $1,647.06
• D) $3,235.00

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Definitions:

Price Effect

The impact that a change in a good's price has on its demand or supply, affecting consumer choice and market equilibrium.

Nonprice Competition

A marketing strategy whereby a firm seeks to differentiate its product or service from competitors through attributes other than price, such as quality, service, or brand image.

Tacit Collusion

An unspoken agreement between competitors to avoid certain competitive practices, such as price wars, to maximize profits without explicit communication.

Price Leadership

A situation in a market where one leading company sets the price of goods or services, and other companies in the market follow.