A landscaping service calculates the cost to landscape a home at $6,500. The service then adds $1,400 for their profit margin, charging the homeowner $7,900 for the work. This method of pricing is
A) markup pricing
B) target pricing
C) traditional break-even pricing
D) cost-plus

Question

Quizplus · Accepted Answer

A landscaping service calculates the cost to landscape a home at $6,500. The service then adds $1,400 for their profit margin, charging the homeowner $7,900 for the work. This method of pricing is cost-plus because the price is based on costs and desired profit margin.

A Landscaping Service Calculates the Cost to Landscape a Home