Sears Is Adding a New Line of John Deere Lawn

question 60

Multiple Choice

Sears is adding a new line of John Deere lawn mowers. The cost of each such lawn mower is $321.00 with an operating cost of adding this line is estimated to be 40% of the cost of each unit. If Sears matches the competition's retail price of $649 on each lawn mower, what will be the operating profit per unit?

• A) $328
• B) $199.60
• C) $128.40
• D) $259.60
• E) $61.40

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Definitions:

Random Selection

Selection of a sample in such a way that each person in a population has an equal and independent chance of being chosen.

Sampling Methods

Techniques used to select a portion of a population for study, aimed at making inferences about the entire population.

Representative

An individual who acts on behalf of another person(s), typically in a legislative or decision-making capacity.

Ethnographic Study

In-depth study of a culture, which uses a combination of methods including participant observation.