When Peter's Pickles rolled out its new line of exotic pickles, the managers sat down to do a breakeven analysis. They quickly realized that they need to make a change if the new line was to be profitable in the first year. What did they talk about?
A) They decided to roll out an odd pricing strategy so that they could keep the customer guessing.
B) They discussed whether they should raise the price of the product or decrease costs of production.
C) They decided that their premium pickle line needed prestige, so their pricing strategy will be high/low pricing.
D) They decided that the new pickles will be profitable, if they release the product and then price it based on the demand.

Question

Quizplus · Accepted Answer

The managers realized that the breakeven analysis showed that the new line may not be profitable in the first year, so they need to make a change. Deciding whether to raise the price or decrease the costs of production will help them achieve a profitable margin. The other options, such as odd pricing strategy or high/low pricing strategy, may not be effective in ensuring profitability in the first year. The option about releasing the product and pricing it based on demand is also not a viable option as it cannot guarantee profitability in the short term.

When Peter's Pickles Rolled Out Its New Line of Exotic