COST-PLUS PRICING

The simplest pricing method wherein a standard mark-up is added to

the cost of the product. Unit Cost : Total
expenditure incurred in
• Mark-up ( Example: We want 20% Mark-up) producing a product

• Selling Price = Unit cost / (1- 20% mark-up)
= Php 30.00 / (1 - .20)
= (30/80)*100
= Php 37.50
Mark-Up : The amount
added to the unit cost to
gain profit
Selling Price : The
resulting price after
(Unit Cost + Mark-up) to
which the product is sold in
the market.