K-Block Cooking Charts Are Poster-Sized Recipes Designed to Encourage Children

K-Block cooking charts are poster-sized recipes designed to encourage children to cook. The recipe cards are sold in packages of four. Fixed costs for the company are $6,000, and variable costs per card are $1. A package of four cards is sold for $9.99 because the product's marketer wants to earn about a 60 percent profit on each package sold. What advice would you give the marketer of K-Block cooking charts?

A) The method she has selected is difficult for inexperienced marketers to use.
B) The price of her charts only need to cover her variable costs, so she can charge less and earn the same amount of money.
C) A long distribution channel will increase her profit.
D) The method she is using ignores market demand.
E) Pricing should be determined through looking at consumer demand without consideration for total costs.

Correct Answer:

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