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Professional Certified Marketer Questions 86–90 (page: 19)

In Ravonia, the telecom sector is dominated by four major service providers: Flank, Zelno, Tuhaz, and Klock. The service providers determine call rates and broadband rates using a collective strategy. They maintain uniform pricing and compete mainly on quality and service. Flank, Zelno, Tuhaz, and Klock are using a _____________ strategy.

What does the break-even point refer to in a break-even analysis?

Which of the following is part of the final step in the ethical decision-making process?

Each month, the owner of a small restaurant that sells take-out fried chicken and biscuits pays $2, 500 in rent, $500 in utilities, $750 interest on a loan, insurance premium of $200, and $250 on advertising on local buses. A bucket of take-out chicken is priced at $9.50. Unit variable costs for the bucket of chicken are $5.50. How many small buckets of chicken does the restaurant need to sell to break even each month?

DRM Bikes received an order for a customized bike. Bret, the employee in charge of ordering parts for the custom bikes, ordered two fewer clamping bolts and realized the mistake only after his co-worker Julio complained of a shortage in clamping bolts. Julio suggested that it was best to inform the customer about the situation and place a new order for a set of bolts. Martino, Bret's co-worker, suggested using an old pair of bolts because the average customer wouldn't recognize the difference. However, Bret knows that the customer is an experienced biker who will notice the difference, and hence suggested that they use the old pair on a bike for a customer who would not. Considering the evidence presented, what is the ethical step for the sales manager to take?