EBK MINDTAPV2.0 CONTEMPORARY MARKETING,
17th Edition
ISBN: 9781337091022
Author: Kurtz
Publisher: VST
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Chapter 18, Problem 6ALR
Summary Introduction
To discuss: The advantages and disadvantages of using incremental-cost pricing instead of full-cost pricing.
Incremental-cost pricing is a method in which the prices of all extra units manufactured after the fixed cost of production has been met based on the variable cost instead of total cost.
Full-cost pricing is a strategy where a variable costs and a total share of fixed costs are not directly attributable to the product that are used in fixing the selling price.
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