If Farmer Brown has a total cost of $1 for a dozen eggs and he chooses to charge a 20% markup as profit, then he is said to have a ________ pricing strategy.
A) backward pricing
B) cost-based
C) uniform delivered
D) fixed cost
E) rigid

Question

Quizplus · Accepted Answer

A cost-based pricing strategy involves setting prices based on the cost of producing the goods plus a markup for profit. In this case, Farmer Brown adds a 20% markup to the cost of the eggs.

If Farmer Brown Has a Total Cost of $1 for a Dozen