Match Point Racquetball

Question 1

0 / 1 pts
Match Point Racquetball Shop is a local retailer. Match Point buys racquets from a regional distributor who works as an intermediary between the manufacturer and Match Point. The manufacturer of the racquets prices the product using Demand-Minus Pricing. The manufacturer’s selling price (to the distributor) for the X-Omega racquet is $18.00 per racquet. The retailer’s selling price of the X-Omegaracquet to end consumers is $30.00 per racquet. The distributor requires a 20% markup for every X-Omega racquet. What is the RetailMarkup and Cost of Goods on a per racquet basis for Match Point?

1. 20% Markup; $26.25 Cost of Goods
2. 25% Markup; $18.75 Cost of Goods
3. 39% Markup; $21.60 Cost of Goods
4. 25% Markup; $22.50 Cost of Goods
5. 28% Markup; $21.60 Cost of Goods

Question 2

1 / 1 pts

In order to effectively use price competition as a sustainable competitive advantage, a firm must have _________________.

1. many competitors
2. the lowest cost
3. adequate distribution
4. elastic demand
5. a unique product