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If a company changes from full-cost pricing to variable-cost pricing but retains the same markup percentage, their net income will likely

User Chechulin
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When you say full-cost pricing, the sales price is computed based on the manufacturing fixed cost and variable cost of the product plus its markup.

When you say variable cost pricing, the sales price is computed based on the variable cost of each unit plus its markup.

If a company changes from full-cost pricing to variable cost pricing but retains the same markup percentage, their net income will likely be lower.



User Emeke Ajeh
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