Maxim Computer has 10 percent of a $250 billion market. Maxim is a low-cost leader and realizes a 20% margin on sales, and marketing, and administrative expenses equaling 10% of sales. What is Maxim's gross profit?
A) $250 billion
B) $25 billion
C) $5 billion
D) $2.5 billion
E) $500 million
C
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Bill and Josh are considering opening a retail store. They have identified their target market and location and are finalizing the details of the merchandise they will carry
Since the neighborhood is rundown and the customers in the area are very price-conscious, Bill and Josh want to offer goods from well-known brands, but at lower rates than the full retail prices of the products. They choose to stock excess production from manufacturers or goods that have remained unsold at other retailers. This is a description of a(n) ________ retailer. A) off-price B) specialty C) discount D) department E) catalog
A market skimming strategy can be used in conjunction with _____
a. administered pricing b. market pricing c. price wars d. elastic demand