Dennis determines that a new blinking slinky toy will cost his firm $3.50 to produce.He adds 20 percent the manufacturing costs and prices the product at $4.20.This is an example of cost-plus pricing.

Question

Quizplus · Accepted Answer

The pricing strategy described in the statement is cost-plus pricing, which involves adding a markup (in this case, 20%) to the cost of producing a product to arrive at the selling price.

Dennis Determines That a New Blinking Slinky Toy Will Cost