Suppose a Shop Owner Sets a Target ROI of 10

question 30

Multiple Choice

Suppose a shop owner sets a target ROI of 10 percent,which is twice that achieved the previous year.She considers raising the average price of a framed picture to $54 or $58-up from last year's average of $50.In order to still achieve her target,she might:

• A)add value to the framed picture that adds minimal fixed and variable costs, yet consumers are willing to accept
• B)include bundle pricing to encourage consumers to purchase extra items
• C)use noticeable cheaper quality materials to lower her costs
• D)mislabel her price of goods in her income statement to reflect the targeted ROI

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Definitions:

Hospital Insurance

Coverage that pays for hospital expenses incurred by the insured due to illness or injury.

OASDI

Old-Age, Survivors, and Disability Insurance, a comprehensive federal benefits program that provides benefits to retirees and disabled people.

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured while in a hospital.

Double Time

A rate of pay that is twice the standard rate, often paid for overtime work.