Deco Furniture sells reproductions of furniture and collectibles that were seen during the early part of the 20th century.The store's owner does not take into account competition when pricing the store's merchandise.The markup on all items in the store is 100 percent over cost (or double the cost).What is Deco Furniture using?

Question

Quizplus · Accepted Answer

Deco Furniture is using keystoning, which means doubling the cost of an item to determine its selling price. This pricing strategy is commonly used in retail and allows for a consistent markup across all products. Deco Furniture's owner is not taking competition into account when pricing the store's merchandise, so target ROI pricing or break-even pricing are not applicable here. Double sourcing is a procurement strategy that involves using two suppliers for the same product, so it is not relevant to pricing.

Deco Furniture Sells Reproductions of Furniture and Collectibles That Were