APEX Business Finance 9.2.4 Study Guide
Questions With All Correct & Verified
Answers
Last year's sales revenues at Coffee Connection were $27,000, and the cost of sales was $24,840.
What was Coffee Connection's gross profit margin last year, expressed as a percentage? Correct
answer-8%
How does an improvement in productivity affect a business's profit margin? Correct answer-It
increases the profit margin by lowering costs.
A retailer buys books from publishers for $6 each and prices them for sale to consumers at $9. What
is the percentage markup for these books? Correct answer-50%
When setting prices of products, businesses want to make sure they can cover their costs and make
_____. Correct answer-a profit
The marketing manager at a company producing laundry products sees great long-term profits from
selling to many consumers worldwide who care about low prices. Which of the following tactics
would best support this manager's low-price strategy? Correct answer-Design simple, inexpensive
packaging
Based on the principles of psychological pricing, which of the following price adjustments would
likely have the greatest positive impact on sales? Correct answer-From $50 to $49
Charging a lower price per unit for purchases of more units is called a _____. Correct answer-
quantity discount
An electronics store wants to clear the warehouse of all television models that producers are
updating. It decides to begin offering a sale price of 40% off. What is the sale price in dollars for a
model with a list price of $1,000? Correct answer-$600
What is an advertising allowance? Correct answer-A price reduction that a producer gives to
resellers to encourage them to promote products
Marketing managers from two companies agree that competing to offer the lowest prices has been
hurting their profit margins, so they agree on the prices they will charge for some of their key
products. What illegal pricing behavior is this? Correct answer-Price fixing
Questions With All Correct & Verified
Answers
Last year's sales revenues at Coffee Connection were $27,000, and the cost of sales was $24,840.
What was Coffee Connection's gross profit margin last year, expressed as a percentage? Correct
answer-8%
How does an improvement in productivity affect a business's profit margin? Correct answer-It
increases the profit margin by lowering costs.
A retailer buys books from publishers for $6 each and prices them for sale to consumers at $9. What
is the percentage markup for these books? Correct answer-50%
When setting prices of products, businesses want to make sure they can cover their costs and make
_____. Correct answer-a profit
The marketing manager at a company producing laundry products sees great long-term profits from
selling to many consumers worldwide who care about low prices. Which of the following tactics
would best support this manager's low-price strategy? Correct answer-Design simple, inexpensive
packaging
Based on the principles of psychological pricing, which of the following price adjustments would
likely have the greatest positive impact on sales? Correct answer-From $50 to $49
Charging a lower price per unit for purchases of more units is called a _____. Correct answer-
quantity discount
An electronics store wants to clear the warehouse of all television models that producers are
updating. It decides to begin offering a sale price of 40% off. What is the sale price in dollars for a
model with a list price of $1,000? Correct answer-$600
What is an advertising allowance? Correct answer-A price reduction that a producer gives to
resellers to encourage them to promote products
Marketing managers from two companies agree that competing to offer the lowest prices has been
hurting their profit margins, so they agree on the prices they will charge for some of their key
products. What illegal pricing behavior is this? Correct answer-Price fixing
