In Cost-Plus Pricing, the Target Selling Price Is Calculated as

question 43

Multiple Choice

In cost-plus pricing, the target selling price is calculated as

• A)variable cost per unit + desired ROI per unit.
• B)fixed cost per unit + desired ROI per unit.
• C)total unit cost + desired ROI per unit.
• D)variable cost per unit + fixed manufacturing cost per unit + desired ROI per unit.

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Definitions:

Capital Budgeting

The process of planning and managing a company's long-term investments in projects and assets.

Incremental Sales

Additional sales generated by a particular marketing activity or sales initiative beyond the expected or normal level.

Operating Expenses

Costs associated with the day-to-day functions of a business outside of direct production activities, such as sales, marketing, and general administration.

Income Tax Rate

The percentage at which an individual or corporation is taxed, often varying based on income or profit levels.