Lipton makes several easy-to-prepare side dishes that all use macaroni shells.In promoting this product line,Lipton offers a 50-cents-off coupon that can be used for any of its macaroni-based mixes.Therefore,what must Lipton consider when pricing its mixes?
A) joint costs
B) potential (or basing)costs
C) bundling costs
D) differential costs

Question

Quizplus · Accepted Answer

Lipton must consider joint costs when pricing its mixes because the macaroni shells are used in multiple products, and the costs of producing the shells cannot be easily allocated to each individual product.

Lipton Makes Several Easy-To-Prepare Side Dishes That All Use Macaroni