Hershey rsquo s foods recently dunged the ingredients in Mime of ns chocolate -b
ID: 1209925 • Letter: H
Question
Hershey rsquo s foods recently dunged the ingredients in Mime of ns chocolate -based candies to reduce costs. Hershey rsquo s, of count, was betting that most consumers would not notice the change. Which of the following principles could have helped Hershey predict how much of a change they could make before their customers, on average, would perceive the difference? Price plasticity of demand Weber rsquo s Law BoyIe rsquo s Law Selective perception Law of demand. ldquo Market Skimming rdquo is a common strategy employed by firms during the introductory stage of the PLC because of all the following reasons except: Firms have high investment and Man-up costs and need to recover these costs quickly. The number of competitors is minimal or their actions can be minimized Consumers are highly price sensitive. Market demand in price inelastic. None of the above is an exception. Farmer Brothers Coffee produces an excellent line of restaurant-grade drip coffee-maker machine sold to restaurants and delis. The weighted average total variable costs for making an average coffee maker in the line are $120.00. The weighted average selling price for the average unit is $320.00. Farmer Brother rsquo s fixed costs of production and sales are $1,000,000 per month. If farmer Brothers desires $200,000 in profit each month, how many units must it sell each month? (Pick the closest answer) 6,000 5,000 4,000 3,000 2,000 Assume that a manufacturer of ending lawnmowers has TFC that equal $1.5 Million The mowers arc distributed through a standard channel of distribution consisting of the manufacturer, several large wholesalers, and many lawn and warden retailers. The manufacturer has decided that the selling price to consumers for the mower should be about $1.000. the price to the retailers should be $700. and the price to the wholesalers should be $550. If the manufacturer rsquo s AVC for the mower are $350. What is the producer rsquo s breakeven point in units sold (Select the closest answer)? 2,307 units 4,286 units 7,500 units 8,300 units Cannot be determined from the above information In question 12, assume that the correct break-even point is 6,000 unit, (6,000 is not the correct answer for the previous question). What will be the break even in dollar sales (Select the closest answer)? $6,000,000 $4,200,000 $3,300,000 $1,800,000 Cannot be determined from the above information.Explanation / Answer
10. It charges higher price to those who are experimentators and so not much price sentitive. Consumers are highly price senstive is the exception.