Marketing Final Exam – Chapter 13 – Flashcards

All of the following are examples of a price except: A. a fare. B. wages. C. a salary. D. dues. D. a tax.

From a marketing viewpoint, price is __________ exchanged for the ownership or use of a product or service.

Gem Cakes sells designer cupcakes for $4 each. Each cupcake costs $1 for the ingredients and wrapper. Monthly expenses for the shop include the following: rent is $1,000; utilities are $200; an advertisement in the local paper is $200; and wages are $4,000 per month. How much monthly profit would be expected if the business sells 6,000 cupcakes each month?

Which of the following statements about profit objectives is most accurate? A. Managers in the United States have long been praised for their insistence on managing for long-run profits. B. Profit objectives are measured in terms of return on investment or return on assets. C. Firms that are interested in strategic planning always establish a maximize current profit objective. D. An organization's chief marketing officer (CMO) usually establishes a target return on an expense objective. D. Market share and unit volume are two types of profit objectives.

Which of the following is NOT a pricing constraint? A. Cost of changing prices and the time period they apply B. Single versus a product line C. Social responsibility impact the product has on society D. Newness of the product or stage in its product life cycle E. Competitors' prices

A monopolistic competitive market is where:

The former Soviet Republic of Turkmenistan is located in Central Asia and is one of the last countries on the planet to gain Internet access. The only Internet service provider for the entire country is Turkmen Telecom. As a result, there is no need for price competition, promotion, or product differentiation because Turkmen Telecom operates in a(n) __________ type market.

Several years ago, Newsweek ran a pricing experiment that involved setting different newsstand prices for its magazine in different cities and recording the number of units sold. After adjusting for factors like the population of the different cities, Newsweek could plot these prices and units sold in a graph called a(n):

At a price of $3 per issue, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price is increased to $3.25 per issue, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per issue. From the information provided here, what is SHAPE magazine's total revenue obtained at the higher price?

Laura Hillenbrand's book Unbroken, a WWII story of survival and resilience, was a New York Times bestseller in nonfiction for years. During its first year after publication, it often sold 25,000 copies a week in hardcover, at $27 apiece. The publisher's costs were only about $5 a book. What is the total weekly revenue obtained during these weeks?

At a price of $3 per issue, SHAPE magazine sells 1.25 million copies of its magazine targeted to young women seeking a healthier lifestyle. If the price per issue is increased to $3.25 per issue, only 1 million copies will be sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. Calculate the average revenue for SHAPE magazine at the higher price.

Price elasticity of demand refers to:

Which of the following statements about price elasticity of demand is most accurate?

The sum of fixed cost and variable cost represents __________.

The Precision Writing Instruments Company makes a high-end pen known as the Cordova. Materials cost per pen is $6. Labor cost per pen is $5. Production overhead is $1,000,000. Advertising and promotion is $1,000,000. What is the total cost for sales of 500,000 units of the Cordova design?

Which of the following would be an example of a variable cost for a publication like SHAPE magazine that is targeted to young women seeking a healthier lifestyle?

Marginal analysis refers to:

A break-even point refers to:

North Safety Products manufactures butyl gloves that offer permeation resistance to gas or water vapors for workers that use dangerous chemicals like ketones. The company has fixed costs of $10 million for its butyl glove production and unit variable costs of $5 per pair. If the company charges $15 per pair, how many pairs of gloves must it sell to break even?

A __________ is most often used in marketing to study the impact on profits of changes in price, fixed costs, and variable costs.