Question
Which of the following statements about markup pricing is true? a. When a markup approach is used, the resulting price should be based solely on
Which of the following statements about markup pricing is true?
a. When a markup approach is used, the resulting price should be based solely on the computed amount.
b. Everything else being the same, the multiple for the ingredient markup approach to pricing will be smaller than the multiple for the prime ingredient markup approach.
c. In the ingredient markup approach to pricing, the multiple is determined by dividing 1 by the difference of 1 and the desired ingredient cost percentage.
d. With markup approaches to pricing, historical pricing strategies should be ignored.
Please explain your answer
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started