solve question 1 a and b

1. (10 pts.) A distributor of parts for diesel engines sets the initial prices of the items that she sells so that the prices conform to a gross margin of 60 percent. (a) Describe the distinguishing difference between cost-based, competition-based, and customer-based methods of setting an initial price. Which of these three methods is this distributor using? Explain your answer. (b) Given the distributor's price-setting method, what would be her price for an item that costs her $37.207 Show your work