Hal Macini owner of Evergreen Landscaping is more interested in earning customer goodwill than striving for maximum profit.He determines his prices by maintaining the company's profitability at a level that gives him a good living but will never make him a rich man.Macini is basing his pricing policy on:
A) maintaining stable sales levels
B) earning satisfactory profits
C) creating retained earnings
D) creating the most sales possible
E) decreasing consumer demand

Question

Quizplus · Accepted Answer

Hal Macini's pricing policy is based on earning satisfactory profits, which means that he wants to make enough money to maintain a good living but not become exceptionally wealthy. Therefore, he sets prices that allow him to maintain the profitability of his company at a reasonable level, rather than striving for maximum profit or creating retained earnings. His focus is on building customer goodwill, which is more important to him than the number of sales he generates or decreasing consumer demand.

Hal Macini Owner of Evergreen Landscaping Is More Interested in Earning