Which of the Following Represents the Cost-Plus Pricing Formula

question 37

Multiple Choice

Which of the following represents the cost-plus pricing formula?

• A)Price = Cost ÷ Markup percentage.
• B)Price = Cost + (Markup percentage x Cost).
• C)Price = Cost + Markup percentage.
• D)Price = Cost + (Markup percentage + Cost).
• E)Price = Markup percentage x Cost.

---

Definitions:

Capital-Intensive

A business process or industry that requires large amounts of capital investment in comparison to labor.

Average Product

The output per unit of a given input, typically labor, calculated by dividing total product by the quantity of that input.

Marginal Product

The additional output generated by adding one more unit of a particular input, holding all other inputs constant.

Profit-Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profit.