Question: Explain the disadvantages that can result when cost-plus prices are based on absorption costs. Describe the skimming pricing and penetration pricing approaches to pricing new

  1. Explain the disadvantages that can result when cost-plus prices are based on absorption costs.
  2. Describe the skimming pricing and penetration pricing approaches to pricing new products. Provide two examples of each .
  3. what is meant by the terrm contribution margin per unit of scarce resource? how is this concept used in making product mix decisions?

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