Which of the Following Statements About Price Is True

question 94

Multiple Choice

Which of the following statements about price is true?

• A)Price measures what the customer must exchange to obtain goods and services in the marketplace.
• B)Target market, business image, and price are closely related.
• C)For most goods and services, there is an acceptable price range and not a single "ideal price."
• D)All of the above

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating the potential profitability of products.

Net Operating Income

A measure of a company's profitability from its core business operations, excluding non-operating income and expenses.

Variable Expense Ratio

A measurement that indicates the proportion of variable expenses to sales, showing how costs change with sales volume.

Break-even Point

The sales amount where the total income matches the total expenses, leading to neither profit nor loss for the company.