ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Product costs set a(n) ____ to a product’s price.
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demand curve
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experience curve
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floor
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ceiling
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break-even cost
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Explanation:
Detailed explanation-1: -Product costs are the direct costs involved in producing a product. A manufacturer, for example, would have product costs that include: Direct labor. Raw materials. Manufacturing supplies.
Detailed explanation-2: -Product Cost Formula = Direct Labor + Direct Material + Factory Overheads. Factory OH = Indirect Labor + Indirect Material + Other Factory OH. Product Cost per Unit Formula = (Total Product Cost ) / Number of Units Produced. Total Raw Material = Raw Material Required for Production + Ending Raw Material Inventory.
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