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Q:
A) equal to the cost estimate plus a fixed percentage. | B) essentially the same as the cost estimate. |
C) typically 1.5 - 2.5 times the cost estimate in order to account for corporate overhead costs | D) a business decision that considers the cost estimate together with other factors. |
Answer: D) a business decision that considers the cost estimate together with other factors.
Explanation:
Explanation:
Overhead costs should be figured into the cost estimate. Desired profit considered together with other factors such as market demand, availability of resources, prior experience are then used to determine the optimal price.