Question

Bennett has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a _____

Answer 1

Answer:

The correct answer here is cost based pricing strategy.

Explanation:

Cost based pricing strategy is that type of pricing method where selling price of a product is determined by the company by adding a certain percentage of profit element with the cost of a product . The cost here is often manufacturing cost , which is used a basis for setting the final price, which would be taken out by adding a fixed amount or certain percentage of total cost to be added as profit to the cost.