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10 February, 15:30

The target cost approach assumes that:

a. markup is added to total cost

b. markup is added to product cost

c. markup is added to variable cost

d. the selling price is set by the marketplace

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  1. 10 February, 17:42
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    The target cost approach assumes that the selling price is set by the marketplace

    Option D

    Explanation:

    The demand for a product or service is the ultimate price of the retailer, i. e. the cost the consumer pays. The trade may be in a certain number, weight or metric for a product or service.

    This is one of the main factors to be decided by a client. It is necessary because the quality of its survival can be determined. The price of a commodity impacts its sales directly.

    We may set a minimum, limit or combination of these two rates. Depending on the time of the year again, season, area, demand and industry, prices can be determined. It's also a great idea to see what our rivals do. Selling prices may be influenced by legislation and national or local rules.
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