Lisbon Manufacturing Is Considering the Manufacture of a New Product

question 67

Multiple Choice

Lisbon Manufacturing is considering the manufacture of a new product. Lisbon was hoping to sell the product for $588 per unit and estimated the total cost per unit to be $420. Lisbon conducted market research and found out that the market is only willing to pay $539 for the new product. Using the target costing approach, what does the total per unit cost of the new product have to be if Lisbon wants to achieve a 40% markup on total cost?

• A) $215.60
• B) $385.00
• C) $257.60
• D) $420.00

Understand legal considerations related to price discrimination, focusing on the Robinson-Patman Act.

Comprehend the reasons behind offering discounts to specific groups like students or seniors.

Explore the implications of price discrimination on market segmentation and product differentiation.

Grasp methods businesses use to prevent arbitrage in the context of price discrimination.

---

Definitions:

Union Representation

The act of a labor union serving as an intermediary between its members and the employer, negotiating contracts and addressing grievances.

Authorization Card

A document signed by an employee to indicate their wish to be represented by a labor union in collective bargaining with their employer.

Bargaining Rights

The legally protected ability of workers to negotiate employment terms, including wages and working conditions, collectively through representatives or unions.

Voluntary Recognition

The process by which an employer acknowledges a labor union as the official bargaining representative for its employees without requiring a formal election.