Dual pricing is not widely used. Explain its disadvantages
What will be an ideal response?
Answer: One concern with dual pricing is that it leads to disputes about which price should be used when computing the taxable income of subunits located in different tax jurisdictions. A second concern is that dual pricing insulates managers from the realities of the marketplace because costs, not market prices, affect the revenues of the supplying division.
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The United States Environmental Protection Agency (EPA) has mandated that, in order to reduce local pollution, all printing plants have to switch from oil-based inks to water-based inks
This will require entirely new printing presses and the procurement of a completely different printing plate technology. In this instance, the buying center of an organization using printing plants is most likely to face ________. A) a need for market segmentation B) a new task situation C) a straight rebuy situation D) a need for market diversification E) delayed differentiation
Use the information provided in Table 8.4. Adding $1,000 of Weekly Newspaper Advertising (X2 ) can be expected to increase Weekly Gross Revenues by what amount? (Assume all other variables are held constant.)
A) $20,500 B) $3,750 C) $6,500 D) $10,250