Cost-plus pricing is a pricing strategy in which the selling price, of goods and services, is determined by adding a specific fixed markup percentage to a singular product's unit cost.
c. Profits increase and are positively correlated with sales during the growth stage of the product life cycle.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
The true statement about the different stages of a product life cycle is that profits increase and are positively correlated with sales during the growth stage of the product life cycle because the growth stage is typically characterized by an acceptance of the product in the market by the consumers. Thus, there would be an increase in the quantity of goods sold (revenue) and a corresponding increase in profit.
