What is wrong with them using this pricing strategy

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Kevin and Sarah know exactly what their costs are to make and deliver the meals to each customer. They are considering using cost plus pricing since it is easy to determine profitability. What is wrong with them using this pricing strategy?

1) It makes calculating elasticity much better

2) Consumers are indifferent to their costs

3) The cost of food, gas and labor are unpredictable

4) It ignores the value of how consumers perceive a premium exclusive product

5) Answers B and D

Reference no: EM131777916

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