Compute the break-even point

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Reference no: EM1381003

Q. 1. 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
B) $400,000
C) $150,000
D) $200,000

2. S.W.O.T. analysis

A) Should help a manager develop a strategy which leads to a competitive advantage.

B) Seeks to improve strategy planning by scanning for warnings, omens, also 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.

3. Gabriella Sax believes which customers in her dress shop find out certain prices very appealing. Among these price levels, all prices are seen as roughly the same, also 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:

A) Bait pricing.

B) Leader pricing.

C) Prestige pricing.

D) Psychological pricing.

Reference no: EM1381003

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