Question 1

A cost-volume-profit analysis (or break-even analysis) examines the interaction of factors influencing profit levels. Which of the following is NOT a factor that should be considered?

Accepted Answer

A)   Unit variable cost
B)   Sales mix
C)   Volume of sales
D)   Unsold volume
E)   Selling prices D

Question 2

If an organisation wishes to be the most innovative in the business, which derived pricing goal would they employ?

Accepted Answer

A)   Maximising sales growth
B)   Maximising Profit
C)   Market skimming
D)   Premium price
E)   Partial cost recovery C

Question 3

A person's intangible perception of a product constitutes a non-price factor.

Accepted Answer

A) True 
 B)False  True

Question 4

Describe some social responsibility constraints that an organisation may face in relation to pricing behaviour. Provide an example.

Accepted Answer

The answer of Describe some social responsibility constraints that an...

Question 5

How does time dependence make sport suitable for price discrimination? Provide an example.

Accepted Answer

The answer of How does time dependence make sport suitable...

Question 6

Time since price change is a determining factor for elasticity of demand.

Accepted Answer

A) True 
 B)False

Question 7

Think of a sports organisation. What are some ways they go about maximising shareholder value?

Accepted Answer

The answer of Think of a sports organisation. What are...

Question 8

Explain the place of price in relation to other elements of the traditional marketing mix.

Accepted Answer

The answer of Explain the place of price in relation...

Question 9

Which of the following equations for calculating the break-even point is correct?

Accepted Answer

A)   Break-even point =Total fixed costs  Unit price - Unit variable cost ‾\overline { 	ext { Unit price - Unit variable cost } } Unit price - Unit variable cost ​ 
B)   Break-even point = Unit price − Unit variable costTotal fixed costs\frac{Unit ~price~ - ~Unit~ variable ~cost}{Total ~fixed~ costs}Total fixed costsUnit price − Unit variable cost​

Exam 5: Sport and Pricing Strategies