Why has the cost-plus pricing approach become unprofitable


Discussion Post

• Why has the cost-plus pricing approach become unprofitable in recent years? How has the cost function changed?

• What are the obstacles to the adoption of an activity-based pricing (ABP) policy to Ideal and other customers? What could O&M do to help overcome these objections?

The response should include a reference list. Using one-inch margins, Times New Roman 12 pnt font, double-space and APA style of writing and citations.

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