John Is Trying to Figure Out What to Charge Customers

Multiple Choice

John is trying to figure out what to charge customers in the landscaping business he is starting. He knows what the labor costs are, and how to include the materials (plants, mulch, etc.) that he will use in the price. He thought he could add these two together, add an amount for profit and general expenses, and he'd have a fair price. Is he right?

A) Yes. He has the major items covered and incidentals can be covered in the general expenses.
B) No. He needs to ensure the price covers the tools needed for the job.
C) Yes. For a small or start-up business, pricing should be kept as simple as possible.
D) No. He needs to calculate any other expenses and add those into the price.