Cost Plus Pricing

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Cost plus pricing method/Mark up pricing method
In this method, the selling price of the product is arrived at by adding a standard mark-up i.e. margin to the product’s cost. For example, if the total cost of production and distribution of product per unit is Rs. 75. and the firm wants to earn a profit of Rs. 25, the selling price would be Rs. 100 (75 + 25).

 

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