Question
Distinguish between cost-plus pricing method and variable pricing method.
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Basis
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Cost-plus pricing method
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Variable pricing method
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Price of product
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Price remains fixed as it includes cost-plus fixed profit.
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Price varies as it depends on person to person.
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Bargaining
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It is almost nil as cost and profit margin are all set in advance.
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Heavy bargaining as price depends on paying capacity of customers.
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Quantity
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Quantity purchased has no effect on price of the product.
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The price reduces with increase in quantity purchased of the product.
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Profit
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Profit margin is known in advance as it is fixed.
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Profit is not known as it depends on the bargaining and negotiations.
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Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
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Week
|
Number of Customers
|
Tpotal amount billed (in ₹)
|
Average amount billed (in ₹)
|
|
1
|
10
|
1,000
|
100
|
|
2
|
17
|
1,445
|
85
|
|
3
|
13
|
9,23
|
71
|
|
4
|
22
|
5,082
|
231
|
|
5
|
18
|
3,150
|
175
|
|
Tota;l
|
80
|
11,600
|
|
Week
|
Number of Customers
|
Total amount billed (in ₹)
|
Average amount billed ( in ₹)
|
|
1
|
120
|
18,000
|
150
|
|
2
|
60
|
12,300
|
205
|
|
3
|
70
|
10,220
|
146
|
|
4
|
80
|
17,680
|
221
|
|
5
|
90
|
21,600
|
240
|
|
Total
|
|
79,800
|