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Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.

a. True
b. False

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That statement is true.
In the cost-plus pricing approach, you add up all the cost needed for the product (material, direct labor, and overhead) and then calculate it with mark-up percentage in order to determine the price that you should set for your product.
Since cost per unit is determined by total products/total cost, sales volume played a large role in determining per unit costs
User Lauro Moraes
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