Assume That You Can Sell a New Product at $5

question 70

Multiple Choice

Assume that you can sell a new product at $5.00 per unit. Your variable costs are $3.00 per unit and you fixed costs are $20,000. What will be your profit before taxes if you sell 12,000 units next year?

• A) $0
• B) $1,000
• C) $2,000
• D) $4,000
• E) $8,000

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Definitions:

Distribution Centers

Facilities that store goods before they are distributed to stores or end consumers.

Retail Store Space

The physical area that a retailer utilizes to display products for sale to customers within a store.

Four Ps

A marketing mix model that encompasses product, price, place, and promotion strategies in a business.

Marketing

is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.