BUS 201 : Business Chapter 14 Study Guide.docx

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Peter Tingling

Document Summary

Pricing: deciding what the company will receive in exchange for its product. Pricing to meet business objectives: pricing objectives, profit-maximizing, market share pricing. A company"s percentage of the total market sales for a specific product. Price setting tools: cost-oriented pricing, takes into account the need to cover production costs, break-even analysis: cost-volume-profit relationships, variable costs. Those costs that change with the number of goods or services produced or sold: fixed costs. Those costs unaffected by the number of goods or services produced or sold: break-even analysis. An assessment of how many units must be sold at a given price before the company begins to make a profit: break-even point. The number of units that must be sold at a given price before the company covers all of its variable and fixed costs. Pricing strategies: pricing existing products, set either above, below, or at the market price, pricing new products, price skimming.