Joe Bergerson Makes and Sells Maple Racks for Cooling Cakes

question 94

Multiple Choice

Joe Bergerson makes and sells maple racks for cooling cakes and cookies. Joe knows that it costs $15 to make one rack, and he wants to earn a 25 percent profit on each rack. Which approach to pricing is Joe most likely to use?

• A) demand-based pricing
• B) target costing
• C) cost-plus pricing
• D) yield management pricing
• E) value pricing

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Definitions:

Action Potential

An action potential is a rapid electrical impulse that travels along the membrane of a neuron or muscle cell, facilitating communication and response.

Plasma Membrane

A two-layer lipid membrane that surrounds the cytoplasm within a cell, governing how substances move in and out.

Depolarization

The process during which a cell's membrane potential becomes less negative, making it more likely to fire an action potential.

Absolute Refractory Period

A period immediately following an action potential during which a neuron is incapable of generating another action potential, no matter the stimulus strength.