a manufacturer produces a crib at a cost of $120 and adds a markup of 65% of the cost to determine the net price at which the crib will be sold. If he wishes to allow a 20% trade discount for his best customers, what list price should he set for the crib?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
a manufacturer produces a crib at a cost of $120 and adds a markup of 65% of the cost to determine the net price at which the crib will be sold. If he wishes to allow a 20% trade discount for his best customers, what list price should he set for the crib?
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