Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots.The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production.This seems to represent a:

Question

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The contract specifies that the final price will be set as a fixed percentage profit over and above the cost of production. This indicates a cost-based pricing strategy, where the price is determined by adding a markup to the cost of production.

Jian Has Entered into a Contract with the Federal Government