MycroFiber Is a Producer of Microfiber Material for the Auto

Multiple Choice

MycroFiber is a producer of microfiber material for the auto detailing industry. Jamal, the owner of MycroFiber is highly skilled in the technical and manufacturing areas, but does not understand pricing. Jamal knows he wants to cover the cost of production when selling his material and needs revenue to cover his overhead costs and to make a profit. To be sure he meets these goals, Jamal decides to take a cost-based pricing approach and wants to achieve a 50% margin on sales. If MycroFiber's cost of production is $4 a square yard, Jamal will price his material at:

A) $8 a square yard.
B) $6 a square yard.
C) $4 a square yard.
D) $2 a square yard.