How Does Cost-Based Pricing Work

question 12

Multiple Choice

How does cost-based pricing work?

• A) It determines price by adding a fixed margin to the per-unit cost of the product.
• B) It determines the percentage of cost of the raw materials of the product and adds it to the product's price to get the selling price.
• C) It puts the highest profit margins on the most expensive items.
• D) It starts by determining what price consumers would be willing to pay then marketers subtract their desired margin.

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