While working towards a target price of $45.00 per widget,Delta Inc.,calculated their total input costs were $30.00 per widget.Adding $15.00 to the total input costs to arrive at $45.00 would be reflective of:
A)standard markup pricing
B)experience curve pricing
C)cost-plus pricing
D)penetration pricing

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the total cost of producing a product to arrive at a selling price. In this case, Delta Inc. calculated their total input costs as $30.00 per widget and added a markup of $15.00 to arrive at a target price of $45.00 per widget. This is a classic example of cost-plus pricing.

While Working Towards a Target Price of $45