Answer:
total costs plus a margin of profit.
Explanation:
The price of an item is calculated by including the total cost and profit margin.
Here total cost includes both fixed cost and the variable cost i.e to be incurred and without profit margin, no one could send their product. For maximising your profit and maintaining the price you have to lowered your production cost so that it can be met with the competitor price or it should be less than it
hence, the last option is correct
