SEM II - 3.03

A product's selling price is $430 per unit, and the number of units required to reach the break-even point is 2,100. Calculate the total dollar sales the business needs to break even.

• $890,000

• $4.88 per unit

• $903,000

• $.21 per unit

A business purchases a line of items for resale that cost $12.32 each. Expenses total $1.65 per item. What is the break-even price per item?

• $14.71

• $14.26

• $13.97

• $14.92

The variable cost for a product is $3.00 and the total fixed costs are $288,000. The company sells the products for $6.00 each. How many products will the company have to sell to break even?

• 4800

• 32000

• 48000

• 96000

A business decides to produce 6,000 football cushions and sell them for $6.00 each. They cost the company $4.00 each to produce. How many cushions must the company sell to break even?

• 4,000

• 3,000

• 600

• 6,000

What do sales beyond the break-even point provide to a business?

• initial markup

• variable-cost margin

• dividends

• profit

Determine a firm's break-even point in units, given the following information: total fixed cost, $4,000; variable cost per unit, $20; and selling price per unit, $100.

• 50 units

• 80 units

• 100 units

• 500 units

A professional football team that increases ticket prices for next season because the team is on a winning streak is selecting a pricing strategy based on

• previous winning potential

• the number of games played

• what the market will bear

• the location of the target market

Which of the following is the least important factor when selecting a pricing strategy:

• Promotional strategy

• Competitor prices

• Cost of merchandise

• Location of store

If your goal is to avoid storing or discarding merchandise, what pricing strategy should you select?

• Competitive

• Close out

• Cost plus markup

• Versioning

Why would an event marketer promote an upcoming celebrity golf tournament at an exclusive course as a once-in-a-lifetime event?

• To have expensive media coverage

• To obtain more industry support

• To increase advertising costs

• To generate higher ticket prices