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Definition
| a dollar amount added to the cost of products to get the selling price |
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Definition
| means percentage of selling price that is added to the cost to get the selling price |
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Definition
| the amount left after subtracting the cost of sales (COGS) from net sales - to cover the expenses of selling products and operating the business. |
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Definition
| the sequence of markups firms use at different levels in a channel. |
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Definition
| the number of times the average inventory is sold in a year |
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Definition
| adding a reasonable markup to the average cost of a product |
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Definition
| the sum of those costs that are fixed in total-no matter how much is produced |
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Definition
| the sum of those changing expenses that are closely related to output |
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Term
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Definition
| the sum of total fixed and total variable costs |
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Term
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Definition
| cost obtained by dividing total cost by the related quantity |
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Term
| Average fixed cost (per unit) |
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Definition
| cost obtained by dividing total fixed cost by the related quantity |
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Term
| Average variable cost (per unit) |
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Definition
| cost obtained by dividing total variable cost by the related quantity |
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Term
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Definition
| adding a target return to the cost of a product |
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Term
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Definition
| evaluates whether the firm will be able to break even with a particular price |
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Definition
| the quantity where the firm's total cost will just equal its total revenue |
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| Fixed cost (FC) contribution per unit |
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Definition
| the assumed selling price per unit minus the variable cost per unit. |
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Term
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Definition
| analysis focusing on the changes in total revenue and total cost from selling one more unit to find the most profitable price and quantity |
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Term
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Definition
| the change in total revenue that results from the sale of one more unit of a product |
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Term
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Definition
| the change in total cost that results from producing one more unit |
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Term
| rule for maximizing profit |
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Definition
| rule saying the highest profit earned is at the price where marginal cost is just less than or equal to marginal revenue |
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Term
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Definition
| the extra profit on the last unit |
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Term
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Definition
| one who sets a price for all to follow, perhaps to maximize profits or to get a certain target return on investment. |
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Definition
| setting prices that will capture some of what customers will save by substituting the firm's product for the one currently being used. |
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Term
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Definition
| the price consumers expect to pay for many of the products they purchase |
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Term
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Definition
| setting some very low prices, real bargains, to get customers into retail stores. |
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Term
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Definition
| setting some very low prices to attract customers but trying to sell more expensive models or brands once the customer is in the store |
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Term
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Definition
| setting prices that have special appeal to target customers |
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Term
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Definition
| setting prices that end in certain numbers |
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Term
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Definition
| setting a few price levels for a product line and then marking all items at these prices. |
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Term
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Definition
| setting an acceptable final consumer price and worknig backward to what a producer can change. |
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Definition
| setting a rather high price to suggest high quality or high status |
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Term
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Definition
| setting prices for a whole line of products |
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Term
| Complementary product pricing |
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Definition
| setting prices on several products as a group. |
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Term
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Definition
| setting one price for a set of products |
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Term
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Definition
| offering a specific price for each possible job rather than setting a price that applies for all customers. |
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Term
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Definition
| a price set based on bargaining between the buyer and seller |
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