Pricing a Product at $399

question 138

Multiple Choice

Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of which of the following?

• A) price lining
• B) odd-even pricing
• C) minimized pricing
• D) red-line pricing

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Definitions:

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.

Retained Earnings

The part of net profits that is not distributed as dividends but is kept by the company for reinvestment in its primary business or for debt repayment.

Dividends Declared

Profits distributed by a company to its shareholders, usually determined by the company's board of directors.