Jian Has Entered into a Contract with the Federal Government

Multiple Choice

Jian has entered into a contract with the federal government to design a computer simulation model for training helicopter pilots. The contract calls for the final price to be set at a fixed percentage profit over and above her cost of production. This seems to represent a:

A) cost-based pricing strategy.
B) supply and demand formula.
C) demand-based pricing strategy.
D) price leadership pricing strategy.