Unions
A teachers' union and school district representatives meet to negotiate salary increases, class sizes, and healthcare benefits for the next contract period.
Collective bargaining
A company gathers feedback from customers through online surveys before launching a new product.
This information is classified as:
Primary data
A company sells a product for $40. The cost to produce each unit is $25, and fixed costs are $15,000. Managers want to determine how many units must be sold to avoid losing money.
What is the primary purpose of calculating the break-even point?
Identify the minimum sales needed to cover costs
Burger King has enjoyed substantial growth through franchising its outlets. Of which type of restaurant format is Burger King an example?
Quick Service Restaurant
A manufacturer produces a water bottle for $8 and sells it to a retailer for $12.
The retailer then sells it to customers for $18.
What is the retailer's markup amount?
$6
Factory workers stop working and refuse to return until management agrees to higher wages and safer working conditions.
Strike
A streaming service sends promotional emails to customers who frequently watch action movies.
This is an example of:
Behavioral segmentation
A new streaming service launches with a very low monthly subscription price to attract customers quickly.
What is the primary objective of this strategy?
Gain market share quickly
Chelle stops for a soda on her way home and picks up some snacks and a new toothbrush. She knows he is overpaying, but he needs the items now. Chelle most likely stopped in a(n) __________.
Convenience Store
A manufacturer sells sneakers to a retailer for $40.
The retailer applies a 50% markup based on cost.
What price does the consumer pay?
$60
An employee believes their supervisor violated the union contract by assigning mandatory overtime unfairly.
What is the first step the employee should take?
File a grievance
Customers test products in a store but purchase them online.
Showrooming
A supermarket sells bread below cost to attract customers who will purchase additional items.
What strategy is the store using?
Loss-Leader Pricing
American retailer Nordstrom features jewelry, clothing, makeup, and many other high-end products organized into their own areas in the store. Merchandise is priced for high margin and image appeal. Which type of retailer does this example best fit?
Department Store
If Target priced an item at $4.95 and took a markup of 35%, how much did Target pay the manufacturer for that item (round to the nearest cent)?
$3.67
After weeks of unsuccessful negotiations, both union and management agree to let an independent arbitrator make a binding decision on wages.
This situation is an example of:
Arbitration
Customers repeatedly buy the same brand despite cheaper alternatives.
Brand loyalty
Rather than price the EchoDot at $50, Amazon lists it at $49.99. Amazon has therefore used what type of pricing for this product?
Odd-Even Pricing
Rachel’s vacation was rock climbing in Kalymnos, Greece combining a physical activity with the natural scenic beauty and cultural immersion of visiting a new country. Her experience would be classified as what type of tourism?
Adventure
A hotel operates a seasonal restaurant.
Monthly fixed costs are $32,000.
Each dinner sells for $28.
Variable cost per dinner is $18.
The manager expects to sell 3,200 dinners.
Will the restaurant break even, make a profit, or incur a loss? How much?
Break-even point = 3,200 dinners.
Profit/Loss = $0 (exactly breaks even)
A labor dispute reaches a stalemate. A neutral third party meets with both sides to suggest possible compromises but does not impose a decision.
What conflict-resolution method is being used?
Mediation
At what stage of the product lifecycle is the main objective of a company to build awareness and trial of the product?
Introduction
If an item is priced at $18.66 and cost the retailer $12.44 to buy, what
markup percentage was taken on this item?
50%
Dinner at any Paul Bocuse restaurant will cost you a bunch. The atmosphere is elegant and the food is considered to be of the highest quality. Into which category would a Paul Bocuse restaurant fall?
fine-dining
If an item is priced at $16.44 and cost the retailer $12.00 to buy, what is the markup factor for this item?
1.37