Marketers may engage in value pricing, which is the practice of simultaneously while maintaining or decreasing price. Multiple Choice promoting specific product and service benefits Increasing product and service benefits decreasing profit analyzing benefits decreasing cost Variable cost is Multiple Choice the sum of the expenses of the firm that are stable and do not change with the quantity of a product that is produced and sold. the sum of the expenses of the firm that change with the quantity of a product that is produced and sold. c the total expense incurred by a firm in producing and marketing a product, which equals the sum of fixed cost and marginal cost. o the average amount of money received for selling one unit of a product or simply the price of that unit. U the change in total cost that results from producing and marketing one additional unit of a product. Unit variable cost divided by unit selling price times 100 is the contribution margin expressed Multiple Choice as the sum of all units sold. on a per unit basis for a product. as a percentage. as a total of fixed costs. as a total of all costs. Quantity of Price per Total Unit Total Variable Fixed Total Cost (TC Profit (TR Pictures Picture Revenue Variable Cost (VC = Cost (FC) = FC + VC) TC) Sold (Q) (P) (TR=Px Cost (UVC) UVC x Q) Q) 0 $120 $0 $400 $0 $32,000 $32,000 ($32,000) 400 $120 $48.000 $40 $16,000 $32,000 $48,000 $0 800 $120 $96,000 $40 $32.000 $32,000 $64.000 $32.000 1,200 $120 $144.000 $401 $48,000 $32,000 $80.000 $64,000 1,6001 $120 $192,000 $401 $64,000 $32,000 $96.0001 $96.000 2,0001 $120 $240,000 $40 $80,000 $32,000 $112.000 $128.000 Figure 13-6 The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity, price, revenue, cost, and profit scenarios shown in Figure 13-6 above. What is the break-even point quantity for her picture frame store? Multiple Choice o 400 O O 800 O O 1.200 2,000 Target pricing is considered to be a approach to pricing. Multiple Choice cost-oriented profit-oriented demand-oriented competition-oriented service-oriented