Golden Generator Supply is approached by Mr.Stephen,a new customer,to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Golden Generator Supply has excess capacity.The following per unit data apply for sales to regular customers:

If Mr.Stephen wanted a long-term commitment,and not a one-time-only special order,for supplying this product,calculate the most likely price to be quoted assuming the markup remains the same?
A)$650
B)$790
C)$869
D)$370

Question

Golden Generator Supply is approached by Mr.Stephen,a new customer,to fulfill a large one-time-only special order for a product similar to one offered to regular customers.Golden Generator Supply has excess capacity.The following per unit data apply for sales to regular customers:

If Mr.Stephen wanted a long-term commitment,and not a one-time-only special order,for supplying this product,calculate the most likely price to be quoted assuming the markup remains the same?
A)$650 
B)$790 
C)$869 
D)$370

Quizplus · Accepted Answer

Long-run pricing is a strategic decision designed to build long-run relationships with customers based on stable and predictable prices.Therefore,the most likely long-term price = $869.

Golden Generator Supply Is Approached by Mr