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Which of the following statements about markup pricing is true?
a. When a markup approach is used, the resulting price should be based solely on the computed amount.
b. Everything else being the same, the multiple for the ingredient markup approach to pricing will be smaller than the multiple for the prime ingredient markup approach.
c. In the ingredient markup approach to pricing, the multiple is determined by dividing 1 by the difference of 1 and the desired ingredient cost percentage.
d. With markup approaches to pricing, historical pricing strategies should be ignored.
Please explain your answer
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