Lovely Skin is establishing a pricing strategy for a new moisturizer. The total cost to produce each unit is $3.50. The company has decided to add a $1.50 markup, so the unit price to distributors will be $5. Lovely Skin is
Using a approach to price the new moisturizer.
A) good-value
B) value-added
C) cost-plus
D) break-even
E) competitor-based

Question

Quizplus · Accepted Answer

The cost-plus pricing approach involves adding a fixed markup to the cost of producing a product, which is what Lovely Skin is doing by adding a $1.50 markup to the $3.50 production cost.

Lovely Skin Is Establishing a Pricing Strategy for a New