Question

A common method for setting price points is establishing an amount above and beyond the product's cost, to cover all variable costs, a portion of their fixed costs, and to provide a profit to the firm. This is called:
a) Variable costs
b) Keystoning
c) Sunk costs
d) Cost plus pricing
e) The breakeven point

Answer 1

Answer:

correct option is d) Cost plus pricing

Explanation:

The correct answer is Cost-plus pricing

here the selling price is determined by increasing the unit cost of the product to a certain amount of markup.  

Markup = selling price - cost

Markup = The total cost of doing business or good service is covered by the desired profit.

Cost cost = fixed cost + variable cost

so correct option is d) Cost plus pricing