In cost-plus pricing, the target selling price is computed 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 setting the selling price by adding a specific markup to the total unit cost, which includes both variable and fixed costs, to achieve the desired return on investment (ROI) per unit.

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