Question
Assume a boutique clothing store uses cost-plus pricing where it doubles its purchase costs to set its retail prices. For example, the store purchases t-shirts
Assume a boutique clothing store uses cost-plus pricing where it doubles its purchase costs to set its retail prices. For example, the store purchases t-shirts for $10 and sells them for $20. Which of the following scenarios might cause the store to reevaluate its pricing strategy?
A.) All of the answers are correct.
B.) A nearby clothing store sells an almost identical t-shirt for $19.
C.) The t-shirt manufacturer offers the store a one-time discount of $3 off per shirt.
D.) The t-shirts are not selling well.
E.) The t-shirts are flying off the shelves; customers are delighted with the comparatively low prices.
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