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

question 15

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.Tesla set the price of the Roadster high because the company wanted to promote a high-quality image.What type of pricing does this represent?

• A) Prestige pricing
• B) Elite pricing
• C) Penetration pricing
• D) Quality pricing
• E) Complete pricing

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Definitions:

Direct Labor Hours

The total hours worked by employees who are directly involved in the production process of goods or services.

PVC Fencing

A fencing material made from polyvinyl chloride, known for its durability, weather resistance, and low maintenance requirements.

Plantwide Overhead Rate

A unified rate employed across the entire manufacturing facility to allocate overhead expenses to products.

Machine Hours

A measure of the amount of time that machinery is operating and being used for production within a given period.