BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost of product helps to set the ____ price of product
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Maximum
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Minimum
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Explanation:
Detailed explanation-1: -Floor price is the minimum price for a commodity or service.
Detailed explanation-2: -In the price setting process, cost data are most important element. Hence, cost must be relevant to the pricing decision and under-estimation and exaggeration must be avoided. Besides costs, there are also other factors that require consideration.
Detailed explanation-3: -Using a product pricing calculator It uses a cost-plus pricing strategy that takes the total costs to make your product, then adds a percentage markup to determine the final selling price. To start, simply enter your gross cost for each item and what percentage in profit you’d like to make on each sale.
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