Markup pricing is a variation of cost-oriented pricing in which:
A)the price is determined by adding a desired rate of return on investment to total costs.
B)a percentage is added to the retailer's invoice price to determine the final selling price of the product.
C)the costs of producing a product or completing a project are totaled and a profit amount or percentage is added on.
D)a breakeven analysis is performed for expected production and sales levels and a rate of return is added on.

Question

Quizplus · Accepted Answer

Markup pricing involves adding a percentage to the retailer's invoice price to determine the final selling price of the product. This percentage is usually determined by the retailer based on factors such as the level of competition, the target market, and the overall pricing strategy. It is a commonly used pricing method in retail and is relatively simple to calculate.

Markup Pricing Is a Variation of Cost-Oriented Pricing in Which