Use the Following Information to Answer the Following Questions

question 79

Multiple Choice

Use the following information to answer the following Questions
Longwood, Inc. manufactures various lines of computer equipment and is planning to introduce a new line of laptops. Current plans call for the production and sale of 1,000 units, with estimated costs as follows:

The average amount of capital invested in the laptop product line is $900,000 and Longwood’s target return on investment is 18%.

-What price must Longwood charge if the company uses cost-plus pricing based on total variable cost?

• A) $712.
• B) $900.
• C) $1,030.
• D) $1,192.
• E) None of the answers is correct.

Apply microeconomic principles to optimization problems in business (e.g., parking spaces, product pricing).

Evaluate strategies for maximizing store traffic through pricing and services.

Understand the principles of capacity pricing in service industries.

Assess pricing strategies for new product offerings.

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Definitions:

Emotional Self-awareness

The capability of recognizing and understanding one's own emotions, which is a key component of emotional intelligence.

Reality Testing

A psychological process through which an individual distinguishes between what is externally present and what is internally generated by the mind.

Empathy

The capacity to grasp and empathize with someone else's emotions by viewing things from their point of view.

Stress Tolerance

The ability of an individual to endure and manage high levels of stress effectively.