Identify the Technique Sega Is Utilizing When They Charge an Extremely

question 1

Multiple Choice

Identify the technique Sega is utilizing when they charge an extremely low price for their "Play Station" and make up the lower margin on the base unit by higher margins on game sales.

• A)captive product pricing
• B)product bundle
• C)smart pricing
• D)subscription pricing
• E)price lining

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Definitions:

Direct Labor Hours

The total time spent by workers directly involved in the manufacturing process to produce goods.

Machine Hours

A measure of production output, calculated by the total hours that machinery is operated in the production of goods.

Single Plantwide Factory Overhead Rate

A method of allocating factory overhead to all units produced across an entire plant, using a single, uniform rate.

Direct Labor Hours

A measure of the total hours worked by workers who are directly involved in the manufacturing process.