Which of the following correctly identifies the motivation of firms using a market segmentation strategy? firms can avoid the government's anti-trust laws by selecting a small slice of a larger market. this strategy enables a firm to identify common traits in different consumer groups. with limited resources, firms can better satisfy the wants and needs of a smaller target market. government regulations require firms to maintain accurate records to show that the firm has not discriminated against a market segment.

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be: