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Apple Computer Co. typically calculates the proposed price for one of its new products two ways (1) Start with an attractive retail price and then

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Apple Computer Co. typically calculates the proposed price for one of its new products two ways (1) Start with an attractive retail price and then figure out whether Apple can profitably make the product if it wells at that retail price, and (2) Start with how much it costs to produce ani, add their typical profit margin and then estimate the likely price to the consumer at the retail outlet. In other words, (1) to bottom up markup pricing, (2) is top down markup prieing and (1) is backward markup pricing, (2) is forward markup pricing are both correct. Ou) is backward markup pricing, (2) 11 forward markup pricing O (1) is forward markup pricing, (2) is backward markup pricing (1) is bottom up markup pricing, (2) s top down markup pricing O (1) is top down markup pricing, (2) is bottom-up markup pricing

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