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Question
Torreya Company produces gaskets for the automotive industry. Current production cost is $4.50 per carton of 100. There is a highly competitive market for the product, and Torreya currently uses a target pricing approach. Currently, equivalent products are selling for $5.90 per carton. Torreya wishes to earn a minimum of a 30% markup over cost. What would be their most appropriate response?
A) To raise the price to $5.95 per carton
B) To change over to cost plus pricing
C) To mark the price down to $5.80 per carton
D) To stop producing this product because they cannot earn the required amount of profit
Answer
This answer is hidden. It contains 73 characters.
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