Question

Jenny owns a book company. It costs $10.00 to produce a new book and the company wants a 30% profit, so he charges $13.00 for the book. Jeff is using what type of pricing approach?

a. demand backward pricing
b. cost-plus pricing
c. forward pricing
d. odd-even pricing
e. prestige pricing

Answer 1

B. Cost-plus pricing.

Step-by-step explanation:

This is explained to be a cost based pattern or unique strategy which is seen to ensure that costs are been covered in the sense that all pricing variables are seen to add some particular percentage to mark its price. It is seen in most cases is obviously seen to cover all cost of what exactly it is a customer is seen to have loved or valued in the said product.

Certain scenarios has shown that optimization is rare in the discussed topic' way to calculate a price, it shouldn't be your only way of finding price.