In the _____, the supplier establishes a price that will provide a profit margin that is a predetermined percentage of the quoted price, i.e., not a percentage of cost.

Question

Quizplus · Accepted Answer

In the margin pricing model, the supplier establishes a price that will provide a profit margin that is a predetermined percentage of the quoted price, regardless of the cost. This model is based on the idea of setting a price that covers all costs and also generates a target profit margin.

In the _____, the Supplier Establishes a Price That Will