In the Cost-Plus Pricing Approach, the Desired ROI Per Unit

question 79

Multiple Choice

In the cost-plus pricing approach, the desired ROI per unit is calculated by multiplying the ROI percentage by

• A)fixed costs.
• B)total assets.
• C)total costs.
• D)variable costs.

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Definitions:

Marginal Product

The additional product created when one unit of a certain input is added, with all other inputs held steady.

Marginal Revenue Product

The increased earnings resulting from the utilization of one additional unit of a production resource.

Labor Supply

The total hours that workers wish to work at a given real wage rate, reflecting how individuals divide their time between labor and leisure.

Capital

Financial assets or the monetary value of physical assets such as buildings or machinery used by a business to produce goods or services.