Answer:
Note: The full question is attached as picture below
Glucometer company's Total cost can be calculated as $3000 + $500*4 = $5000
Also we can find the customers served in four years of visit = 80*300*4 = 96,000 customers
Also, by estimating that each customer pays $1 for utilizing the machine, the hospitals can make an estimated revenue of $96000.
=> Anything below the range of $96,000 will be an advantage for the hospitals and anything to the rise of $5,000 will be an advantage for the Glucometer Company.
Thus the price of these machines should be decided between the ranges to collate on the revenue goals of the Glucometer Organization.
If this is a multiple choice question and if i get it wrong, im sorry.
I'd guess benifit? lol
A cost that remains unchanged in total despite variations in the volume of activity within a relevant range is a fixed cost. The fixed cost is a type of cost behavior which remains unchanged regardless of the unit or activity changes in a production process<span>. There are four types of cost behavior, which are the fixed cost, the variable cost, the mixed cost, and the step cost.</span>
Answer:
E. Skimming Pricing.
Explanation:
This method or strategy is mainly used in marketing strategy for a new market entry especially because of its uniqueness and also when the value of the commodity to be sold is of a very high qualities and importance.
It is also seen as a product pricing strategy by which a firm charges the highest initial price that customers will pay and then lowers it over time. As the demand of the first customers is satisfied and competition enters the market, the firm lowers the price to attract another, more price sensitive segment of the population. The skimming strategy gets its name from "skimming" successive layers of cream, or customer segments, as prices are lowered over time.
