AS unit 1 Business Studies Questionnaire

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  • Created by: jacob
  • Created on: 23-12-13 19:33

1. What is meant by Cost-plus Pricing?

  • This is the method of pricing which considers the toal cost per unit and then adds on a percentage to arrive at a final price.
  • For example selling a product at £49.99 instead of £50 makes customers think of it as less than £50
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2. Which one of these is a motive for becoming an entrepreneur?

  • Cars
  • Money
  • Woman

3. What is break even?

  • when total revenue is equal to total costs
  • when total revenue is higher than total costs
  • when total costs are higher than total total revenue

4. Define what is meant by Competitive Pricing?

  • Some firms set their prices the same as their competitors
  • This occurs when a firm sets out to destroy (or weaken) the competition through low prices
  • this strategy uses a low price to enter the market & gain market share

5. the formula for contribution per unit?

  • Fixed Costs ÷ (selling price per unit- variable cost per unit)
  • selling price per unit- variable cost per unit
  • Variable cost x fixed costs + profit



I cant believe I found this just now for Clash of Clans: Now you will know why some clans are so strong! (bdesg)

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