A Manufacturer of Tablet Computers Has Designed a Unique New

question 84

Multiple Choice

A manufacturer of tablet computers has designed a unique new product that can network with satellites to access streaming video and television channels.This device does not need a Wi-Fi connection and can be accessed anywhere in the world by logging onto the site.Besides serving as a portable computer,this device bypasses the need for a consumer to purchase cable or personal satellite dish access.Which approach to pricing makes the most sense for the company to use first? ​

• A)​set the price extremely high until competing products are developed
• B)​set the price to match the manufacturing of the device under a private label
• C)​set the price extremely low in order to capture more of the current market share
• D)​set the price to match other computer and television devices sold by competitors
• E)​set the price extremely low in order for consumers to purchase it without needing a coupon

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Definitions:

Retail Division

A segment of a company that directly sells products to consumers, typically involving activities and costs related to retail operations.

Segmented Income Statement

An income statement that breaks down revenues, cost of sales, and expenses by segments such as product lines, departments, or geographic regions.

Contribution Format

A method of income statement presentation that separates fixed and variable costs, making it easier to see the contribution margin.

Segmented Income Statement

An income statement that shows the financial results of different segments of a company separately.