Your new FitBracelet factory just opened and is ready to produce the best wearable fitness trackers on the market. You a

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Your new FitBracelet factory just opened and is ready to producethe best wearable fitness trackers on the market. You are nowmeeting with your national sales team to set goals for the upcomingyear. Since your product is well differentiated from itscompetitors, you’re confident there will be enough potentialcustomers.
The team agrees that a price of $200 is competitive and providesa great chance of gaining market share in the wearable category.Raw materials and production labor cost just $100 per bracelet.
The cost of running the factory, including the lease, utilities,office salaries, and marketing, will total $5 million thisyear.
While you’d love the team to sell hundreds of thousands ofbracelets this first year, you know that at a minimum the productneeds to break even in order for the firm to survive.
1. You sell each bracelet for $200, with variable costs at$100 per unit. When you deduct the $100 costs from the sellingprice of each unit, what remains is the per-unit contribution to_______ costs.
variable
breakeven
marginal
fixed
2. You get into a price war with one of your competitors.What would be your floor price during this price war?
$50
$150
$200
$100
3. Your company is deciding on the best option fortransportation costs. However, you do not want to increase the costof FitBracelet.
F.O.B. factory pricing
Uniform geographic pricing
Zone pricing
F.O.B. destination pricing