If a firms variable costs are high relative to its fixed costs, the sales volume should be maximized.

MARKETING MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

If a firm’s variable costs are high relative to its fixed costs, the sales volume should be maximized.

A	true
B	false
C	Either A or B
D	None of the above

Explanation:

Detailed explanation-1: -Market share * is a firm’s percentage of the total sales volume generated by all competitors in a given market.

Detailed explanation-2: -Dutch Auction This is an open descending price auction where the auctioneer starts with a high asking price and lowers the bid until one of the bidders is willing to accept the auctioneer’s price, or when the seller’s reserve price is achieved.

Detailed explanation-3: -Target return pricing is a variation of break-even pricing. Target costing starts with an ideal selling price based on customer value considerations and then aims at costs that will ensure that the price is met. In small companies, prices are typically set by the sales or marketing departments.

Detailed explanation-4: -Break even pricing is the practice of setting a price point at which a business will earn zero profits on a sale. The intention is to use low prices as a tool to gain market share and drive competitors from the marketplace.

There is 1 question to complete.

GENERAL KNOWLEDGE

GK

MARKETING MANAGEMENT