Different Brands Within a Company's Product Line Generally Have Different

question 32

Multiple Choice

Different brands within a company's product line generally have different profit margins; for example,items with higher price lines have higher profit margins.Nike Variety tennis shoes have variable costs of $6 and sell for $24,whereas Nike Wimbledon tennis shoes have variable costs of $38 and sell for $48,but when fixed overhead is added,the shoe is unprofitable by $2 per pair.Which statement is most accurate regarding Nike's pricing approach with these two product lines?

• A) Demand for each shoe line is unrelated to price.
• B) Nike is using a cost-plus percentage-of-cost pricing strategy.
• C) Nike is using a product-line pricing strategy.
• D) Demand for each shoe line is unrelated to product quality.
• E) Consumers do not use price as an indication of quality.

---

Definitions:

Space Corporation

An organization that operates in the aerospace industry, involved in spacecraft design, manufacturing, or space exploration activities.

Corporate Explorer

An individual or entity engaged in the exploration of new business opportunities, markets, or innovations within the corporate structure.

Space Law

Law consisting of the international and national laws that govern activities in outer space.

Outer Space Treaty

An international agreement that forms the basis for international space law, outlining principles regarding the use of outer space by states.