Bennett has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a
A) cost-based pricing strategy.
B) supply and demand formula.
C) demand-based pricing strategy.
D) price leadership pricing strategy.

Question

Quizplus · Accepted Answer

Cost-based pricing is based on production costs plus some margin of profit.

Bennett Has Entered into a Contract with the Federal Government