Prices Such As: $19.99,$29.99,and $39.99 Are Examples Of

question 138

Multiple Choice

Prices such as: $19.99,$29.99,and $39.99 are examples of:

• A)target pricing
• B)incremental pricing
• C)range-based pricing
• D)odd-even pricing

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Definitions:

Total Cost

The sum of all expenses incurred in producing a product or delivering a service, including direct costs like materials and labor, and indirect costs such as overhead.

Contribution Margin

A department’s net profit, used to cover indirect expenses.

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the basic profitability of a company's core activities.

Indirect Expenses

Expenses that are not directly tied to a specific product or service but are necessary for the overall operation of a business.