Tesla Motors "Going Green" Doesn't Have to Be Boring.The Tesla Roadster Sport

question 26

Multiple Choice

Tesla Motors
"Going green" doesn't have to be boring.The Tesla Roadster Sport is an electric car that goes from 0 to 60 in four seconds and drives more like a race car than an environmentally-friendly ride.But that level of performance will set you back $128,500.As of 2009,Silicon Valley-based Tesla Motors,Inc.was the only company offering highway-compatible electric cars.Most Roadster Sport buyers are car enthusiasts and are buying them for the "fun toy" aspect of having an electric car rather than for environmental reasons.
-Refer to Tesla Motors.The price of the Roadster was set so that total revenue was as large as possible relative to total costs.This represents a _____ approach.

• A) profit maximization
• B) market share pricing
• C) demand-oriented pricing
• D) sales maximization
• E) status quo pricing

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Definitions:

Transfer Price

The price charged for goods, services, or intellectual property transferred between divisions within the same company.

Producing Departments

Departments or divisions within an organization directly involved in producing the goods or services offered to customers.

Fixed Costs

Costs that do not change with the level of production or sales activity within a certain range and period, such as rent, salaries, and insurance.

Cafeteria

A type of food service location within an institution where customers serve themselves from a variety of dishes made available.