Assume it costs Lady Marion Seafood,Inc.$30 to catch,process,freeze,package,and ship 5-pound packages of Alaskan salmon.The firm adds 60 percent to the cost of its salmon products and charges customers $48 for a postage-paid vacuum-sealed package.What type of pricing does Lady Marion Seafood use to arrive at its final price?

Question

Quizplus · Accepted Answer

Lady Marion Seafood uses standard markup pricing, which adds a fixed percentage (in this case, 60 percent) to the cost of the product to arrive at the final price. This is a common pricing strategy in many industries, including the food industry.

Assume It Costs Lady Marion Seafood,Inc