Standard markup pricing is frequently used by managers of supermarkets because it is particularly suited to situations when
A)there is a large line of products all with basically the same product attributes.
B)there is a large number of products and estimating demand for each would be difficult and time consuming.
C)you have a specific profit goal you need to obtain by a specific date.
D)you have a policy of selling every item in your line at the same price regardless of product class.
E)your products are time sensitive especially to seasons or holidays.

Question

Quizplus · Accepted Answer

Standard markup pricing works well in situations where there are a large number of products and estimating demand for each would be difficult and time-consuming. It is based on adding a fixed percentage markup to the cost of the product to arrive at the selling price. This approach allows for efficient pricing decisions without requiring detailed market research for each individual product.

Standard Markup Pricing Is Frequently Used by Managers of Supermarkets