Heather runs Cute Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Heather looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Heather is demonstrating _____.

Heather runs Cute Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Heather looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Heather is demonstrating _____.

Heather runs Cute Cakes, a gourmet cupcake bakery. To set prices for her cupcakes, Heather looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price. Heather is demonstrating _____.




A. cost-plus pricing



B. price war



C. markup on sales price



D. average-cost pricing



E. target return pricing



Answer: A


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