Pricing Strategies Quiz

It involves adjusting prices in real-time based on various factors, such as demand, supply, and customer behavior

• Cost-plus pricing

• Dynamic pricing

• Competitor-based pricing

• Value-based pricing

In Target Profit Pricing, what is the formula for Unit Cost?

• Variable Cost + (Fixed Costs / # of Units)

• Unit Cost x Mark-Up %

• Unit Cost + PMV

• Target ROI x Investment

In Mark-Up Pricing, what is added to the Unit Cost to determine the Mark-Up Price?

• Fixed Costs

• Peso Mark-Up Value

• Target ROI

• Investment

Which of the following is a Variable Cost?

• Equipment Rent

• Raw Materials for Bags

• Employee Regular Salary

• Monthly Advertising Expense

What is the definition of Variable Cost?

• Expenses that do not vary with production output

• Funds needed to set-up the business

• Expenses that vary in direct proportion to the quantity of the output

• Long-term investments

How do you compute the Mark-Up Price?

• Unit Cost + PMV

• Unit Cost x Mark-Up %

• Variable Cost + Fixed Costs

• PMV - Unit Cost

A type of pricing strategy that is basing a product or service’s price on how much the target consumers believe it’s worth.

• Value-based pricing

• Cost-plus pricing

• Dynamic pricing

• Competitor-based pricing

What is the formula for computing the unit cost in mark-up pricing?

• Unit Cost = Variable Cost + Fixed Costs

• Unit Cost = Variable Cost + (Fixed Costs / # of Units)

• Unit Cost = Fixed Costs / Variable Cost

• Unit Cost = Variable Cost - Fixed Costs

What is the first step in mark-up pricing?

• Compute for total sales

• Compute for unit cost

• Compute for total profit

• Compute for total cost

If the variable cost is 60 and fixed costs are 2,000 for 500 units, what is the unit cost?

• 64

• 60

• 62

• 66