14.1k views
1 vote
Question 4 of 10

When setting prices of products, businesses want to make sure they can
cover their costs and make
A. a discount
OB. a markup
OC. an allowance
OD. a profit
SUBMIT

User Thetaco
by
7.7k points

1 Answer

2 votes

Final answer:

When setting prices of products, businesses want to make sure they can cover their costs and make a profit by adding a markup to the cost of production.


Step-by-step explanation:

When setting prices of products, businesses want to make sure they can cover their costs and make a profit. This means that the price of the product should be set higher than the cost of producing it, allowing the business to earn money from sales.

For example, if a business incurs costs of $10 to produce a product, it would set a price higher than $10 in order to earn a profit. The difference between the price and the cost is known as markup.

By setting prices that cover costs and include a markup, businesses can ensure that they are financially sustainable and able to continue operating.


Learn more about Setting prices of products in business

User Ahmar
by
8.1k points

No related questions found