81) Which of the following is an example of a variable cost for an amusement park? A) salary of the park manager B) food cart supplies C) liability insurance D) interest on the property’s mortgage E) property taxes 82) For a company that manufactures plastic signs, the printing press used to make the signs, the manager’s salary, and the utilities are all examples of ________. A) fixed costs B) average fixed costs C) variable costs D) marginal costs E) everyday costs 83) As a manufacturer increases price, the ________ drops. A) target B) break-even point C) marginal revenue D) total cost E) variable cost 84) Joe Bergerson makes and sells maple racks for cooling cakes and cookies. Joe knows that it costs $15 to make one rack, and he wants to earn a 25 percent profit on each rack. Which approach to pricing is Joe most likely to use? A) demand-based pricing B) target costing C) cost-plus pricing D) yield management pricing E) value pricing 85) Swatch surveyed the market and identified an unserved segment of watch buyers. Using these results, they created a watch at a price consumers were willing to pay. The unorthodox order of this marketing mix decision is an example of ________. A) competition-based pricing B) cost-plus pricing C) target costing D) value pricing E) penetration pricing 86) The average price Xerox charged when it introduced the first stand-alone fax machine was $12,700. This premium price was a way for Xerox to recoup some of the research and development costs that went into production. Xerox used ________. A) a skimming price B) a trial price C) penetration pricing D) prestige pricing E) target costing 87) Valeo Fashions has just introduced a new line of fashion dresses for teens. The line will initially enter the market at high prices in a ________ strategy. A) penetration pricing B) skimming pricing C) price leadership D) yield management pricing E) value pricing 88) When a beverage maker came out with a new drink and priced it at half price for a month to attract buyers, the company was using a(n) ________ strategy. A) penetration pricing B) skim pricing C) everyday low price D) trial pricing E) price leadership 89) Johnson Boats wants to introduce a new model of boat into mature markets in highly developed countries with the goal of quickly gaining mass-market share. As a consultant, you should recommend a ________ pricing strategy. A) skim B) penetration C) price leadership D) cost-plus E) captive 90) A skimming price strategy would likely be most effective in selling which of the following? A) any convenience item B) an electronic device which involved a great deal of research and development to bring to market C) shampoo and bath soap D) anything easily copied by competitors E) most items at EDLP retailers such as Walmart