Question

Nerdherd electronics sells three different sizes of televisions at three different prices. in this case, the company's pricing strategy is referred to as ________ pricing.

Answer 1

Nerdherd electronics is definitely using Cost-plus pricing strategy. In this case Nerdherd electronics determined their selling price based on a specific dollar amount markup to the televisions unit cost. The question says three different sizes of television, so it is same television but different sizes and the bigger the size of the television the higher the unit cost. So the bigger sized television unit cost added to the dollar amount mark up will be different from the smaller size television unit cost added to the dollar amount. Resulting in the three different sizes of the television having different selling prices.