BUISENESS MANAGEMENT
MARKETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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using the wholesale cost of an item as the basis for the priced charged
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what competitors are charging for the same good
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how much the consumer is willing to pay for a product or service
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None of the above
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Detailed explanation-1: -Cost-based pricing is a pricing method that is based on the cost of production, manufacturing, and distribution of a product. Essentially, the price of a product is determined by adding a percentage of the manufacturing costs to the selling price to make a profit.
Detailed explanation-2: -Utilizing an average-cost pricing strategy, a producer charges, for each product or service unit sold, only the addition to total cost resulting from materials and direct labor. Businesses will often set prices close to marginal cost if sales are suffering.
Detailed explanation-3: -Cost-Plus Pricing Strategy It’s also known as markup pricing since businesses who use this strategy “markup” their products based on how much they’d like to profit. To apply the cost-plus method, add a fixed percentage to your product production cost.