To calculate what it charges a client,a detective agency charges $200 a day direct costs plus an additional $50 per day to pay for office expenses,licenses and other fixed costs and fifteen percent of full costs for the profit margin.What type of pricing strategy is being used by the detective agency?
A) Contingency
B) Cost-based
C) Perceived value
D) Fee for service
E) Going-rate

Question

Quizplus · Accepted Answer

The detective agency is using a cost-based pricing strategy as it is taking into account both the direct costs and fixed costs to determine the price, as well as adding a profit margin.

To Calculate What It Charges a Client,a Detective Agency Charges