Yield management is strategic control of inventory. It maximizes revenue or prof
ID: 2734880 • Letter: Y
Question
Yield management is strategic control of inventory. It maximizes revenue or profits from fixed perishable resources.
What are the three rights of yield management?
right revenue at the right point of sale for the right items
right features at the right time for the right cost
right estimated price at the right location for the right time
right person at the right location for the right cost
right customer at the right time for the right price
2 points
Question 3
Which of the following is a pricing technique that is used to evaluate consumer demand by comparing the number of products that must be sold at a variety of prices to cover total cost with estimates of expected sales at the various prices?
Modified breakeven analysis
Incremental-cost analysis
Cost-plus analysis
Segmentation analysis
2 points
Question 4
_____ cost is the change in total cost that results from producing an additional unit of output.
Fixed
Variable
Marginal
Additional
2 points
Question 5
A five-pound bag of roasted peanuts sells for $8, and the average variable cost is $4 per bag. If the total fixed cost for the roasted peanuts is $80,000, the breakeven point in bags is:
120,000
20,000
40,000
80,000
2 points
Question 6
Demand often shows:
less elasticity in the long run than in the short run.
less elasticity in the short run than in the long run.
the same elasticity in the short run and in the long run.
more elasticity in the short run than in the long run.
2 points
Question 7
In which of the following market structures individual firms have the highest control over product prices?
Monopoly
Monopolistic competition
Oligopoly
Pure competition
2 points
Question 8
As the marketing and sales manager, you are in charge of setting the selling prices of prize-winning music boxes with changeable songs. After you explained two cost-plus approaches to price setting, the CEO chose the straightforward approach of full-cost pricing. The next day, you received an unexpected order for 10,000 units from a Swiss contact with a tight deadline.
Required:
What information do you need immediately to arrive at a selling price that you can justify to the CEO?
value of resources consumed in the production of the music boxes
acceptable loss-leader pricing, prescribed rate of return, and financing
manufacturing capacity and customer's price point of willingness to pay
overhead expenses, profit margin, and direct cost per music box
fixed costs of production, variable costs, and revenue
2 points
Question 9
Increased options available to shoppers combine to create a market characterized by _____ elasticity.
demand
constant
supply
linear
2 points
Question 10
The practice of adding a percentage of specified dollar amount—or markup—to the base cost of a product to cover unassigned costs and to provide a profit is called _____ pricing.
cost-plus
full-cost
incremental-cost
breakeven
Comment
1.right revenue at the right point of sale for the right items
2.right features at the right time for the right cost
3.right estimated price at the right location for the right time
4.right person at the right location for the right cost
5.right customer at the right time for the right price
Explanation / Answer
Ans1 right revenue at the right point of sale for the right items 2. right features at the right time for the right cost
3.right estimated price at the right location for the right time
Ans3 A)modified breakeven analysis
Ans 4. D) additional cost
Ans5 Break even point= fixed cost/sales- variable cost
80000/8-4=20000
Ans 6 A Demand is less elasticity in the long run than in the short run
Ans7 Monopoly
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