Question

Which cost-based pricing method entails adding a fixed percentage to the cost of all items in a specific product class?

Answer 1

Standard markup pricing

Step-by-step explanation:

Standard markup pricing is the easiest formula for pricing that can be implemented. This basically involves for calculating the cost of the product, and then adding a fixed margin to the product.

This basically adds a fixed margin that is profit and is usually a percentage of cost.

For example: the total cost of a product = $10

Thus fixed margin of 30% is added to get the selling price, thus, margin = $10
`*` 30% = $3

Now, the price shall be

$10 + $3 = $13.