Which of the following is the formula for cost-plus pricing?
A) (unit cost) / (1-X%)
B) (unit cost) x (1-X%)
C) (unit cost) + (1-X%)
D) (unit cost) - (1-X%)

Question

Quizplus · Accepted Answer

Cost-plus pricing is a pricing strategy where the price of a product is determined by adding a markup to the cost of producing the product. The markup is typically a percentage of the cost, and the formula for cost-plus pricing is:Selling price = Unit cost + (Unit cost x Markup percentage)In this case, the markup percentage is X%, so the formula for cost-plus pricing is:Selling price = Unit cost + (Unit cost x X%)Simplifying this equation, we get:Selling price = Unit cost + (Unit cost x (1-X%))Therefore, the correct answer is A.

Which of the Following Is the Formula for Cost-Plus Pricing