Question

Creative quilts studio sells hundreds of colors and types of fabric and thread. to price its inventory, the owners add 50 percent to the cost of each bolt of fabric and every spool of thread. what is this pricing approach called

Answer 1

Standard markup pricing.

Step-by-step explanation:

Standard markup pricing uses a fixed (standard) percentage rate of markup for different items. A common rate that is also used in this case is 50% markup.

Example:

If the bolt of fabric costs Creative Quilts $10, they will add 50% of that to the cost when they sell it. 50% * $10 = $5.

Markup + item cost = selling price

$5 + $10 = $15