You Were to Buy One Peach Tree and One Apple

question 354

Multiple Choice

you were to buy one peach tree and one apple tree from the Stark Bros.fruit trees and landscaping catalog in two separate orders,you would pay a total of $108.99.However,if you order the peach and apple tree together in the same order,you pay only $89.99.When purchasing the two trees together,what pricing strategy does Stark Bros.employ?

• A) product line pricing
• B) prestige pricing
• C) price lining
• D) discount pricing
• E) bundle pricing

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Definitions:

Cash Dividend

A payment made by a company out of its profits to its shareholders, usually in the form of cash.

Net Income

The total earnings of a company after subtracting all expenses, including taxes, from its total revenues.

Indirect Method

Indirect Method is a way of preparing the cash flow statement where net income is adjusted for non-cash transactions, changes in working capital, and other items to calculate cash flow from operating activities.

Operating Activities

Operating Activities involve the primary day-to-day actions related to producing and delivering a company's products or services, influencing cash flow and operating income.