The Cost-plus Pricing Method

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The Cost-plus Pricing Method
Philip Grimes, IT Professional, Ireland, Member
Cost-plus pricing is an easy method for applying a unit margin on a product. This makes it easy to calculate profit based on sales. But it does not take into account volume. Full cost plus pricing leads to the view that prices change little with changes in output since mark-up remains constant. (sawyer, 1985)....



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