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Yvonne estimates the average cost of her floral arrangements is $14 regardless of whether she is making 5 or 20 arrangements that day. She adds a standard markup to the $14 estimate to determine her price. Yvonne is using a(n) _______ pricing method.

Respuesta :

Answer:

Cost

Explanation:

Cost pricing method is one of the pricing strategies by which a markup is added to cost price to arrive at the selling price. The markup is the desired profit.

The average cost is $14 and markup is $14. So, selling price of floral arrangements is $28 (14 + 14). $14 represents her profit in the business. Number of goods produced has no effect on the profit. It remains same irrespective of number of goods produced as cost price method is based on average cost.

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