When a business figures out a product’s total cost and then charges a pre-

determined markup, this is called____.

When business determines how much customers will pay for a certain product,

then figures out how to produce it for a cost that still leaves room for profit, this is called?

Economies of scale refers to:

When a company makes a one time purchase, like a building, furniture, or computers, this is considered a/an

Total Cost = Operating Costs + ?

______ is the difference between how much it costs a company to make a product and the final selling price.

______ is when total costs = total sales

Fixed Costs/(Price per unit - variable costs) = Breakeven Point

So...if a company has 10,000 in fixed costs and charges $6 per unit, and each unit has $1 of variable costs...how many products do they have to sell to reach the breakeven point?

True or False: If you use Price-based costing, you must be careful to keep your operating costs low, while still maintaining quality.

True or False: If a company uses cost-based pricing, it might be possible for competitors to undercut your price (or charge slightly less) to take your customers.

Which of the following are fixed costs? Choose ALL that apply.