1. Which of the following can influence a company's pricing decisions?
a. Manufacturing costs.
b. Competitors.
c. Customer demand.
d. Pricing laws.
e. All of these.
2. The curve that shows the relationship between the sales price and quantity sold is called the:
a. marginal revenue curve.
b. average cost curve.
c. profit curve.
d. demand curve.
e. revenue curve.
3. The curve that shows the relationship between the total sales revenue and quantity sold is called the:
a. marginal revenue curve.
b. average cost curve.
c. profit curve.
d. demand curve.
e. revenue curve.
4. The following costs relate to Southern Company: Variable manufacturing cost, $30; variable selling and administrative cost, $8; applied fixed manufacturing overhead, $15; and allocated fixed selling and administrative cost, $4. If Southern uses total-cost pricing formulas, the company's markup percentage would be computed on the basis of:
a. $30.
b. $38.
c. $45.
d. $57.
e. some other amount
5. The following costs relate to Southside Company: Variable manufacturing cost, $30; variable selling and administrative cost, $8; applied fixed manufacturing overhead, $15; and allocated fixed selling and administrative cost, $4. If Southside uses absorption manufacturing-cost pricing formulas, the company's markup percentage would be computed on the basis of:
a. $30.
b. $38.
c. $45.
d. $57.
e. some other amount.