Question

You have heard that customers will try a new caterer if the price is 20% below their existing caterer. Your competitor prices a luncheon at $800. What does your price need to be to get customers to try your business? a) $160 b) $640 c) $800 d) $850

Answer 1

b) $640

Explanation:

Competitor's price = $800

Price, 20% below of competitor's:

• $800 - 20% =
• $800*(100-20)/100 =
• $800*0.8 =
• $640

Correct answer choice is b) $640