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Question

Manufacturers use __________ for deciding cost plus-pricing.

A
Break-even analysis
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B
Production function analysis
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C
Decision making analysis
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D
Demand analysis
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Solution

The correct option is B Break-even analysis
Break-even analysis is a way by which marketers can determine the lowest price at which a product can be sold. If the product is sold at anything lower than the break-even price, the company makes a loss. This is not something that any company can continue to do except for a very short period of time. So that, manufacturers use break even analysis for deciding cost plus pricing.

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