Question

Tom sells pies for $5.00 each. He needs to increase the price by 10%. Calculate the new price, and identify the strategies that could be used. Select all that apply.

Answer 1

To calculate the new price of a pie after a 10% increase, multiply the original price by 1 plus the decimal equivalent of 10% we get $5.50. Strategies for increasing the price of a product include adding value, adjusting packaging, and implementing targeted marketing campaigns.

Step-by-step explanation:

To calculate the new price of a pie with a 10% increase, you can multiply the original price by 1 plus the decimal equivalent of 10%.

Original price of a pie: $5.00

10% increase: $5.00 * (1 + 0.10) = $5.00 * 1.10 = $5.50

So, the new price of the pie after a 10% increase would be $5.50.

Strategies that could be used to increase the price of a product include:

1. Adding value or enhancing the product to justify the increase in price.
2. Adjusting the packaging or presentation to convey a higher perceived value.
3. Implementing targeted marketing campaigns to highlight the uniqueness or premium qualities of the product.