1. Elijah has classified the following items under variable costs. Which item has he classified INCORRECTLY?

A). expenses for parts
wages
outgoing freight
property taxes

Question 2

Given the following data, compute the break-even point (BEP) in DOLLARS.

Selling price = $2.00
Variable cost = $1.00
Fixed cost = $150,000

A). $300,000
$400,000
$150,000
$200,000

Question 3

The reason that MICRO-marketing costs too much in many firms is that:

A). the marketing concept has not been accepted and implemented.
most new products are not necessary to meet competition.
marketing is not really needed.
advertising is usually ineffective.

Question 4

Which of the following statements BEST describes a marketing manager?

A). A marketing manager should know that most consumer complaints do not require a response because the consumer's dissatisfaction is beyond the control of the firm.
B).A marketing manager should recognize that many consumers who complain are troublemakers and that not much can or should be done about their complaints.
C). A marketing manager should assume that most customers who are dissatisfied will complain, but that people who are satisfied will not.
d). A marketing manager should be concerned that many of the complaints that are reported are never resolved.

Question 5

A S.W.O.T. analysis

A).should help a manager develop a strategy that leads to a competitive advantage.
B).seeks to improve strategy planning by scanning for warnings, omens, and tips about competitors' plans.
C).is not necessary if competitors have already entered the market.
D).defends against potential competitive threats by planning specific safeguards, weapons, or tactics.

Question 6

A low stockturn rate:

A).is extremely good for profits.
B)decreases inventory carrying cost.
C)ties up working capital.
D)is typical of fresh fruits and vegetables.

Question 7

Which of the following statements BEST describes a markup?

A markup is a dollar amount subtracted from the cost of products to get the selling price.
A markup is the selling price minus the cost of the item, divided by the cost of the item-times 100.
A markup is the selling price of an item, divided by its cost-times 100.
A markup is a dollar amount added to the cost of products to get the selling price.

Question 8

Gabriella Sax believes that customers in her dress shop find certain prices very appealing. Between these price levels, all prices are seen as roughly the same, and price cuts in these ranges generally do not increase the quantity sold (i.e., the demand curve tends to drop vertically within these price ranges). Therefore, Sax prices her items as close as possible to the top of each such price range. This is referred to as:

bait pricing.
leader pricing.
prestige pricing.
psychological pricing.

Question 9

A market-directed economy:
Answer
ensures that voters and politicians agree what problem has to be solved first.
makes efficient use of resources.
concentrates solely on profit generation.
spreads income evenly among the population.

Question 10

Sellers sometimes take the auction approach and adapt it by using sequential price reductions over time. When or where is this approach most commonly used?

With products that have a short life.
When the product supply is unlimited.
With heavy equipment manufacturing machinery.
When competition is absent.