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Explain Step-By-Step How Average-Cost Pricing Would Be Used to Set

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Explain step-by-step how average-cost pricing would be used to set the exact price of a product. What is the primary risk associated with average-cost pricing?
Step 1: Calculate the total costs expected to produce the product.
Step 2: Forecast the number of units expected to be sold.
Step 3: Divide the total cost by the number of units to determine the average cost per unit.
Step 4: Add the desired profit margin to the average cost per unit to determine the average price per unit.


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