Which of the following statements correctly reflects the relationships among quantity, cost, and price, based on the cost-oriented pricing model?

A. The average total cost is usually obtained by adding the profit per unit to the quantity demanded at selling price.
B. Cost-oriented selling price per unit is usually determined by adding the variable cost per unit with the estimated quantity to be sold.
C. The quantity demanded at selling price is the quantity used to compute the average cost.
D. The estimated total number of units to be sold usually determines the average fixed cost per unit.


Answer: D

Business

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