Different brands within a company's product line generally have different profit margins higher price lines have higher profit margins. For example, Nike Variety tennis shoes have variable costs of $6 and sell for $24 whereas, Nike Wimbledon tennis shoes have variable costs of $10 and sell for $48. It must be true that:
A.
demand is unrelated to price.
B.
Nike is using a cost-plus percentage-of-cost pricing strategy.
C.
Nike is using a price lining strategy.
D.
demand is unrelated to product quality.
Answer: C