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Beautiful Skin Pty Ltd has decided to market a razor for women - HSC - SSCE Business Studies - Question 3 - 2002 - Paper 1
Question 3
Beautiful Skin Pty Ltd has decided to market a razor for women. It has calculated total production costs for each razor and added a 10% margin to set the final price... show full transcript
Worked Solution & Example Answer:Beautiful Skin Pty Ltd has decided to market a razor for women - HSC - SSCE Business Studies - Question 3 - 2002 - Paper 1
Step 1
Identify the pricing strategy used
Answer
The scenario describes a pricing strategy where Beautiful Skin Pty Ltd calculates total production costs and then adds a margin to set the final price. This is indicative of 'Cost pricing', as the price is determined based on the cost of production plus a markup to ensure profitability.
Step 2