Setting the Highest Initial Price That Customers Really Desiring the Product

question 143

Multiple Choice

Setting the highest initial price that customers really desiring the product are willing to pay is:

• A)skimming pricing.
• B)penetration pricing.
• C)price lining.
• D)odd-even pricing.

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Definitions:

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.

Unit Contribution Margin

The amount of revenue per unit sold that exceeds the variable costs involved in producing that unit.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from regular business operations.