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Internet Exercises
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Review the article shown at the web site, http://www.easton-consult.com/Wither_Pricing.pdf.

The article explains one consulting firm's analysis of the relevance of variable costs in pricing decisions. Easton has a number of articles on strategy and competitiveness.

Required:

  1. Review the above article and explain within 200 words or less the relevance of variable costs in pricing.
  2. What are the three things firms consider in setting prices?





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