Question

The price of an item should be: Question 13 options: based solely on the break-even analysis. less than what the competition is charging. what purchasers are willing to pay. total costs plus a margin of profit.

Answer 1

total costs plus a margin of profit.

Step-by-step explanation:

The price of an item is calculated by including the total cost and profit margin.

Here total cost includes both fixed cost and the variable cost i.e to be incurred and without profit margin, no one could send their product. For maximising your profit and maintaining the price you have to lowered your production cost so that it can be met with the competitor price or it should be less than it

hence, the last option is correct