_markup_price_calculation

What is the primary goal of Break-Even Pricing?

What is the unit cost in the Cost-Plus Pricing example?

What is the markup price in the Cost-Plus Pricing example?

What is the variable cost in the Cost-Plus Pricing example?

What is the fixed cost in the Cost-Plus Pricing example?

What is the break-even volume in the Break-Even Pricing example?

What is the price in the Break-Even Pricing example?

What is the purpose of Cost-Based Pricing?

What is the formula to calculate the unit cost in Cost-Plus Pricing?

What is the formula to calculate the markup price in Cost-Plus Pricing?

Cost-based pricing: determines the total cost of producing one unit of a product (fixed cost + variable cost) and adds expected profit
Markup: an amount a seller adds to the cost of the product to get the selling price
Formula: Markup Price = (1 - Desired Return on Sales)

Break-even analysis: calculates the number of units that must be sold to break even on the cost of making and marketing a product
Formula: Break-Even Volume = Fixed Costs / (Price - Variable Cost)

Fixed Costs: costs that do not vary with production or sales level
Variable Costs: costs that vary directly with the level of production
Total Costs: the sum of fixed and variable costs for any given level of production

Competition-based pricing: based on meeting the challenge of competitors' prices in markets
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