Vater Ltd., decided to manufacture vitamin enriched water along with their original business of soft drinks. After due deliberation the finance and marketing department of Vater ltd., decided to adopt a pricing technique which focused on adding a certain percentage of profit to the cost of production, to arrive at the final offer price.
Identify the pricing strategy adopted by Vater Ltd.
Identify the pricing strategy adopted by Vater Ltd.
Answer & explanation
Correct answer: option 4
Explanation: cost-plus pricing method, where the manufacturer charges a price to cover the cost of producing a product plus a reasonable profit.