In cost-plus pricing, the target selling price is calculated as
A)variable cost per unit + desired ROI per unit.
B)fixed cost per unit + desired ROI per unit.
C)total unit cost + desired ROI per unit.
D)variable cost per unit + fixed manufacturing cost per unit + desired ROI per unit.

Question

Quizplus · Accepted Answer

Cost-plus pricing involves calculating the total unit cost (which includes both variable and fixed costs) and then adding the desired return on investment (ROI) per unit to determine the target selling price.

In Cost-Plus Pricing, the Target Selling Price Is Calculated as