Question

Cheese makers in Wisconsin sell their leftover brine to local city and county highway​ departments, which use it in conjunction with salt to melt icy roads. Which product mix pricing strategy does this​ represent?

A. By-product pricing
B. Product line pricing
C. Product-bundle pricing
D. Two-part pricing
E. Optional-product pricing

Answer 1

A) By product pricing

Step-by-step explanation:

If you are able to sell your companies by products it is a great way to make more money and to reduce costs. Imagine if the cheese factories needed to throw away all that brine. They would need to develop some waste disposal facility which obviously costs money to build and operate. Instead they are lowering their costs by selling it and at the same time are getting more money. They would probably even give it away for free if no one was willing to pay for it.