Tone zone plans to introduce four mp3 player models over the next year. these models range from basic players at $99 per unit, to more sophisticated players at $399 per unit. the more features a model has, the more expensive it is. what pricing strategy is tone zone using for its range of mp3 players?

a) product line pricing
b) product bundle pricing
c) captive product pricing
d) by-product pricing
e) optional product pricing

Product line pricing                                                                          

Explanation: In simple words, it refers to a pricing strategy under which the organisation separates its product on the basis of cost and price so that various quality products could be offered in the market to capture different classes of customers.

This strategy helps an organisation to prepare a vast customer base and is generally used by the firms in economies where there is too much income gap present and the firms offering the products are few.

     Sometimes the prices are differentiated on the basis of unique quantities that have same utility value but have different customers preference.

A. cost driver rate and the actual cost driver volume

Explanation:

When using activity-based costing, the cost for an activity is based on the cost driver rate, which is the cost per unit of the activity, and the actual cost driver volume which is how many units was used in the activity.

For instance, if the cost driver rate for marketing is $8 per unit and 50 units were produced - actual cost driver volume- then the cost of marketing would be:

= 8 * 50

= $400