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Glenwood Pet Hospital is considering implementing a new pricing strategy for its veterinarian services.After reviewing the previous three years' revenue, Glenwood finds that most of its customers bring their pets in for the required annual vaccinations and then only if the animal is ill.Glenwood's objective is to generate more income per customer on an annual basis.The hospital has previously priced its services by charging a flat fee for an office visit, a fee for each vaccine and a fee for each type of examination beyond the basic office visit.Most customers pay the flat office fee and a fee for a rabies vaccine.Glenwood is now considering a new plan where the pet owner would pay one fee that would cover an office visit, the required rabies vaccine and additional vaccines that prevent heartworm, kennel cough and fleas.Glenwood hopes to encourage the pet owners to view their pet's health as part of a prevention program rather than as a one-time annual visit.
-Glenwood is considering a markup pricing basis, with the cost for office visit plus vaccines at $45.If Glenwood were to add a markup of 33.3 per cent of the costs, its price would be:
A) $79.
B) $65.
C) $55.
D) $78.
E) $60.
Correct Answer:
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