Your Local Instant Photocopying Service Charges 10 Cents a Copy

question 112

Multiple Choice

Your local instant photocopying service charges 10 cents a copy for copies up to a quantity of 25,9 cents a copy for 26 to 100,and 8 cents a copy for 101 or more.What kind of adjustment to list or quoted prices is the photocopying service using?

• A)bundle pricing
• B)quantity discounts
• C)loss-leader pricing
• D)promotional discounts

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Definitions:

Variable Cost

Costs that vary directly with the level of production output, such as raw materials and labor costs directly involved in production.

Units

Measurements or quantities of a product or service that are produced or sold.

Sold

The past tense of sell, indicating that a transaction where goods were exchanged for money has been completed.

Conversion Cost

The combination of direct labor and manufacturing overhead expenses, representing the costs required to convert raw materials into finished products.