Scenario 20

question 108

Multiple Choice

Scenario 20.2 Use the following to answer the questions.Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services. After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill. Glenwood's objective is to generate more income per customer on an annual basis. The hospital has previously priced its services by charging a flat fee for the office visit, a fee for each vaccine, and a fee for each type of examination beyond the basic office visit. Most customers pay the flat office fee and a fee for a rabies vaccine. Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine, and additional vaccines that prevent heartworm, kennel-cough, and fleas. Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program, rather than a one-time annual visit.
-Refer to Scenario 20.2. Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45. If Glenwood were to add a markup of 33.3 percent of the costs, its price would be ____.

• A)$79
• B)$65
• C)$55
• D)$78
• E)$60

---

Definitions:

Charles Sumner

An American politician and senator known for his strong stance against slavery and his leadership in the anti-slavery movement before the Civil War.

Preston Brooks

A pro-slavery Congressman from South Carolina known for his violent attack on abolitionist Senator Charles Sumner in 1856.

Dred Scott Decision

A landmark 1857 Supreme Court case that held African Americans, whether enslaved or free, could not be American citizens and therefore had no standing to sue in federal court, and that the federal government had no power to regulate slavery in the federal territories acquired after the creation of the United States.