Joe Bergerson Makes and Sells Maple Racks for Cooling Cakes

question 91

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 20 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

---

Definitions:

Sodium Phosphate

An inorganic compound used in various applications, including as a laxative, a food additive, and in dental products.

Internal Sphincter

refers to a ring of muscle located in the anus or the urethra that helps control the expulsion of feces or urine from the body.

Enema Tube

A medical device used to inject fluid into the rectum and colon, often for the purposes of clearing the bowels or administering medication or nutrition.

Loose Stools

Bowel movements that are more liquid than solid, often indicative of digestive issues.