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1 page/≈275 words
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Level:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
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MS Word
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Total cost:
$ 4.68
Topic:

Cost Plus Pricing (Essay Sample)

Instructions:

Pricing strategies

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Cost-plus pricing strategy is mainly used by businesses that are market leaders. In this strategy, the business determines a desirable margin for its products and adds this to the total cost of production to come up with the price. The cost of a product is called the full cost and is the sum of all expenses involved in production of a good or service. This includes the manufacturing cost, the delivery cost and all other administrative expenses.
The profit mark-up is the percentage added on the cost of a product for it to be profitable. Profit margin is the percentage of price that represents profit. For a market leader, the mark-up will be an arbitrary figure, which t...
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