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

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Definitions:

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Discount Column

A column in invoices or financial documents indicating the amount of discount applied to the items or services listed.

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