The Markup Approach to Price Setting Used by Most Intermediaries

question 188

Multiple Choice

The markup approach to price setting used by most intermediaries:

• A) makes little sense--given the large number of items carried and the small sales volume of any one item.
• B) is very inflexible because the same markup percent must be applied to all products.
• C) often uses the trade (functional) discount allowed by the manufacturer.
• D) is quite complicated--because each product has a different delivered cost.
• E) All of the above.

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Definitions:

Sum

The result of adding two or more numbers or entities together.

Sum

The result of adding two or more numbers together.

Even Integers

Whole numbers that are divisible by 2.

Estimate Time

Approximating the duration that a task or activity is expected to take.