Use the Following to Answer the Questions

question 43

Multiple Choice

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

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Definitions:

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.

Stockholders' Equity

The ownership interest of shareholders in a company, calculated as the company's total assets minus its total liabilities.

Personal Assets

Assets owned by an individual as opposed to those owned by a business or an institution.