Aristo Industries in South Dakota makes 1,000 pies per day. The total cost per raspberry-apple pie is $3.25. Its average fixed costs equal $.75 per pie. The company has calculated that if its charges $4.25 per pie, it will realize a 30 percent profit on the total cost of each pie. What pricing method is Aristo Industries using?

Aristo Industries in South Dakota makes 1,000 pies per day. The total cost per raspberry-apple pie is $3.25. Its average fixed costs equal $.75 per pie. The company has calculated that if its charges $4.25 per pie, it will realize a 30 percent profit on the total cost of each pie. What pricing method is Aristo Industries using?

Aristo Industries in South Dakota makes 1,000 pies per day. The total cost per raspberry-apple pie is $3.25. Its average fixed costs equal $.75 per pie. The company has calculated that if its charges $4.25 per pie, it will realize a 30 percent profit on the total cost of each pie. What pricing method is Aristo Industries using?



Answer: Cost-plus pricing


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