Joe Bergerson makes and sells maple racks for cooling cakes and cookies.Joe knows that it costs $15 to make one rack,and he wants to earn a 25 percent profit on each rack.Which approach to pricing is Joe most likely to use?

Question

Quizplus · Accepted Answer

Joe is likely to use cost-plus pricing, where he adds a 25% profit margin to the cost of making each rack to determine the selling price.

Joe Bergerson Makes and Sells Maple Racks for Cooling Cakes