Jenna sells ice creams at the beach each summer.Each bar of ice cream costs her 20′.She adds on an additional 20′ to each bar to pay for electricity for the freezer,napkins,and her time,finally selling her ice creams at 40′ a bar.In this scenario,Jenna uses _____.
A)bundle pricing
B)rate-of-return pricing
C)odd-even pricing
D)markup pricing

Question

Quizplus · Accepted Answer

The scenario describes a markup pricing strategy. Jenna is adding an additional 20′ to the cost of each bar of ice cream to cover her expenses and make a profit, resulting in a selling price of 40′ per bar. This is a common approach to pricing in retail, where the seller adds a markup (fixed amount or percentage) to the cost of the product to determine the selling price.

Jenna Sells Ice Creams at the Beach Each Summer