Dyani runs Cute Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Dyani looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Dyani is using ________.

Respuesta :

Answer:

The options are :

A. cost-plus pricing

B. price war

C. markup on sales price

D. average-cost pricing

E. target return pricing

The answer is Cost plus pricing

Explanation:

Cost plus pricing is a strategy used in determining the price of goods by entrepreneurs.

It is done by the addition of a fixed mark-up price to the initial cost which was required in the production of the goods in order to ensure there is profit on them.

The pricing strategy used by Dyani in setting prices for her cupcakes is: Cost-plus Pricing.

What is Cost-plus Pricing?

  • Cost-plus pricing, also known as markup pricing, can be described as a cost-based pricing strategy whereby the the price at which a product is sold is determined by adding a markup percentage to the total cost of production of the product.
  • The markup percentage is usually the profit made on a unit cost of that product.

Thus, the pricing strategy used by Dyani in setting prices for her cupcakes is: Cost-plus Pricing.

Learn more about Cost-plus Pricing on:

https://brainly.com/question/6480601

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