The total fixed cost does not directly affect the customer's price perception. However, it influences the pricing strategy of a business. If the fixed costs are high, the business may need to set higher prices for its products to cover these costs and make a profit. This could lead to customers perceiving the product as expensive. But it's important to note that customers' price perception is also influenced by many other factors like product quality, brand reputation, and market competition.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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