A firm charges $25 for a product. If the markup is 25 percent, then the fully allocated average cost of the product is $20.
The term "markup" describes the discrepancy between an item's cost and its selling price. In other words, the vendor makes money by charging a premium over the overall cost of the commodity or service.
A business should realise the importance of markup. For instance, developing a sound pricing strategy is one of the most crucial resources a successful company can have. A product or service's markup needs to be high enough to cover all costs and turn a profit.
Retail price = $25
Markup =25% =0.25
Retail price = Average cost of product * (1+Markup)
25 = Average cost of product *1.25
Average cost of product =25/1.25
Average cost of product = $20
Learn more about costs here brainly.com/question/14945040
#SPJ4
Answer: A company that is looking at customer trends, its competitors, and the economy to see if there are any threats or opportuntities on the horizon, and also examines its production policies and sales histories to determine its strengths and weaknesses, is conducting a <u>SWOT analysis.</u>
Explanation:
SWOT is basically the acronym for; Strengths, Weaknesses, Opportunities, and Threats. It is a very effective tool used in the business industry to form strategies. You summarized the data from internal factors to discover your strengths and weaknesses. You use the external factors to identify the threats and opportunities.
.
Reminder advertisements are especially effective for products in which stage of their product life cycle? Mature. Heading into the mature stage of the product life cycle shows peaking sales that eventually slow down. When the sales start to slow, advertisers will have reminder advertisements to remind consumers their product is still readily available for purchase.
