Assume it costs Lady Marion Seafood, Inc. $30 to catch, process, freeze, package, and ship 5-pound packages of Alaskan salmon. It uses a 60 percent markup on its salmon products and charges customers $48 for a postage-paid vacuum-sealed package. What type of pricing does Lady Marion Seafood use?

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Quizplus · Accepted Answer

Lady Marion Seafood uses standard markup pricing, which involves adding a fixed percentage markup to the cost of the product to determine the selling price. In this case, the cost to produce a 5-pound package of salmon is $30, and the company adds a 60% markup to arrive at a selling price of $48. This approach is commonly used in retail and consumer goods industries.

Assume It Costs Lady Marion Seafood, Inc