Management Cannot Influence the Price of a New Product

question 36

Multiple Choice

Management cannot influence the price of a new product.The market price is $100 per unit.The estimated production cost is $30 per unit.The estimated nonproduction cost is $40 per unit.If the gross profit is 40 percent of the market price,what is the target cost of the new product?

• A) $30
• B) $40
• C) $60
• D) $70

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Definitions:

Piaget

A psychologist from Switzerland renowned for his groundbreaking contributions to the development of children, especially his conceptual framework on the stages of cognitive growth.

Logical Processes

Cognitive operations used in reasoning, problem solving, and decision making, which follow systematic patterns of thinking.

Social-Cognitive Approach

A theory in psychology that emphasizes the role of observational learning, social experience, and reciprocal determinism in the development of personality.

Albert Bandura

A renowned psychologist best known for his theory of social learning, emphasizing the role of observational learning, imitation, and modeling in behavior.