Honda motor co. prices its whole line (from the $15,000 honda fit economy sedan to the $40,000 pilot suv) so that it offers high quality at reasonable prices.

what pricing policy is honda using?

a. cumulative quantity discount
b. value pricing
c. bundle pricing
d. introductory price deal
e. skimming price

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)