A retailer has one opportunity to purchase a holiday gift basket. The retailer buyseach basket for $10 and sells each basket for $25. Baskets left at the end of the season aresold to a discounter for $1. What is the underage cost?
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 retailer has one opportunity to purchase a holiday gift basket. The retailer buys
each basket for $10 and sells each basket for $25. Baskets left at the end of the season are
sold to a discounter for $1. What is the underage cost?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
