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The Edutext Company has adopted a system that allows its employees to use Windows-based applications.Each user has a machine that resembles a desktop PC.However,these desktop machines lack the processing power to perform all the tasks themselves,so they are connected to a server that stores the programs and data and provides the actual processing power.Edutext is using a system known as a(n) :
Cost-Plus Approach
A pricing strategy where the selling price is determined by adding a specific markup to the cost of producing or purchasing the product.
Differential Profit
The change in profit resulting from choosing one option over another in decision-making processes.
Fixed Expenses
Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.
Variable Factory Overhead
Expenses in a factory that vary with the level of production output, such as utility costs and materials.
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