A retailer that uses a cost-based pricing approach would base its price on:
A) the wholesale cost of the item.
B) the competitor's price of the item.
C) the retailer's overall fixed costs.
D) customer demand.

Question

Quizplus · Accepted Answer

A cost-based pricing approach involves setting prices based on the costs of producing, distributing, and selling the product, plus a fair rate of return for effort and risk. The wholesale cost of the item is a direct cost in this calculation.

A Retailer That Uses a Cost-Based Pricing Approach Would Base