Zach is opening a tire store.He intends to set the price of tires based on determining the total cost of his purchase of one tire and then adding an amount to cover additional costs and profits.Zach is using ___ pricing.
A) cost-based
B) additional markup
C) floor establishment
D) survival

Question

Quizplus · Accepted Answer

Zach is determining the price of tires based on the total cost of his purchase, which is the key feature of cost-based pricing. Option B (additional markup) is not a correct choice because adding an amount to cover additional costs and profits is part of the cost-based pricing strategy. C) floor establishment and D) survival are not relevant to the pricing strategy used by Zach.

Zach Is Opening a Tire Store