Go Zone Plans to Introduce Four Tablet Models Over the Next

question 76

Multiple Choice

Go Zone plans to introduce four tablet models over the next year. These models range from basic readers at $99 per unit, to more sophisticated tablets at $399 per unit. The more features a model has, the more expensive it is. What pricing strategy is Tone Zone using for its range of tablets?

• A) product line pricing
• B) product bundle pricing
• C) captive product pricing
• D) by-product pricing
• E) optional product pricing

---

Definitions:

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, available for distribution among stakeholders.

Operating Activities

Activities that are directly related to the operation of the business, such as selling, managing, and producing goods and services.

Capital Expenditures

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Direct Method

A costing approach where only direct costs are charged to a cost object, typically excluding overhead or indirect costs.