BC Chapter 2 Test Review

The amount other businesses are selling similar products or services.

• Price Markup

• Variable Expenses

• Profit Margin

• Market price

Costs that go up or down based on customer volume.

• Fixed Expenses

• Price Markup

• Variable Expenses

• Economies of Scale

The feelings of a customer towards a product or service.

• Perceived Value

• Pricing Psychology

• Profit Margin

• Price Markup

As a business grows, costs to produce items decrease, which can lead to a larger profit margin.

• Market Price

• Economies of Scale

• Perceived Value

• Pricing Psychology

The difference between the total cost to run a business and the total revenue the business brings in.

• Profit Margin

• Fixed Expenses

• Price Markup

• Pricing Psychology

Costs that don't go up or down with customer volume.

• Pricing Psychology

• Fixed Expenses

• Market Price

• Economies of Scale

Increasing the cost of your product or service to ensure a profit margin.

• Fixed Expenses

• Profit Margin

• Price Markup

• Pricing Psychology

The strategy behind pricing conveys a message.

• Profit Margin

• Pricing Psychology

• Market Price

• Economies of Scale

Business: Dog Treats

Cost to Make: $1.25

Mark Up: 3x

1. 1. Calculate Selling Price

2. 2. Calculate Profit

3. 3. Calculate Profit Margin

(a)  

Gourmet Popcorn

Cost to Make: $5.50

Mark Up: 2x

1. 1. Calculate Selling Price

2. 2. Calculate Profit

3. 3. Calculate Profit Margin

(a)