Steve, the sales manager for TL Products, wants to sponsor a one-week "Customer Appreciation Sale" where the firm offers

Steve, the sales manager for TL Products, wants to sponsor a one-week "Customer Appreciation Sale" where the firm offers to sell additional units of a product at the lowest price possible without negatively affecting the firm's profits. Which one of the following represents the price that should be charged for the additional units during this sale?    A.  average variable cost B.  average total cost C.  average total revenue D.  marginal revenue E.  marginal cost Refer to section 11.3

36.

The president of Global Wholesalers would like to offer special sale prices to the firm's best customers under the following terms: 1. The prices will apply only to units purchased in excess of the quantity normally purchased by a customer. 2. The units purchased must be paid for in cash at the time of sale. 3. The total quantity sold under these terms cannot exceed the excess capacity of the firm. 4. The net profit of the firm should not be affected. 5. The prices will be in effect for one week only. Given these conditions, the special sale price should be set equal to the:    A.  average variable cost of materials only. B.  average cost of all variable inputs. C.  sensitivity value of the variable costs. D.  marginal cost of materials only. E.  marginal cost of all variable inputs. Refer to section 11.3

37.

The contribution margin per unit is equal to the:    A.  sales price per unit minus the total costs per unit. B.  variable cost per unit minus the fixed cost per unit. C.  sales price per unit minus the variable cost per unit. D.  pre-tax profit per unit. E.  aftertax profit per unit. Refer to section 11.3