Scenario 13.2 Use the Following to Answer the Questions

question 160

Multiple Choice

Scenario 13.2
Use the following to answer the questions.
Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit.
-Refer to Scenario 13.2. Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45. If Glenwood were to add a markup of 33.3 percent of the costs, its price would be ____.

• A)$79
• B)$65
• C)$55
• D)$78
• E)$60

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Definitions:

Average Time

The mean duration or period taken by a set of events or tasks, calculated by dividing the sum of all times by the number of events.

Race Times

The durations taken to complete a race, often used in statistical analyses to compare the performance of different athletes or conditions.

Government Employees

Individuals who work within the various branches of the government (national, state, local) and are paid through the public sector budget.

Private Sector Workers

Employees who work for businesses owned by individuals or entities other than the government or public sector.