Determination of Price Per Unit Through Cost-Plus Pricing

Total Total Total Total

Sizes to Mark- Selling
Direct Direct Overhead Production
produce up Price
Materials Labor Cost Cost
8oz 13.51 1.43 1.96 16.9 40% 24.00
12oz 16.37 1.50 2.07 19.94 40% 28.00
16oz 20.69 1.57 1.82 24.08 40% 34.00

Table 39 showed the breakdown of cost as basis for determination of price under cost-

plus pricing method (Refer to Appendix E for details of the computation).

For 25ml, direct material cost per unit accounts for ₱ 0.85; direct labor cost is ₱0.92;

overhead cost is ₱ 2.77; total production cost is ₱ 4.54. Adding a mark-up of 40% based on the

total production cost will result in the total price worth ₱ 6.00.

For 250ml, direct material cost per unit is ₱ 8.47; direct labor cost is ₱ 0.70; overhead

cost is ₱ 2.16; total production cost is ₱ 11.33. Adding a mark-up of 40% based on the total

production cost will result in the total price worth ₱ 16.00.

For 500ml, direct material cost per unit is ₱ 21.91; direct labor cost is ₱ 0.25; overhead

cost is ₱ 0.82; total production is ₱ 22.98. Adding a mark-up of 40% based on the total

production cost that will result in the total price worth ₱ 32.00.

For 1 liter, direct material cost per unit is ₱ 47.54; direct labor cost is ₱ 0.13; overhead

cost is ₱ 0.41; total production is ₱ 48.08. Adding a mark-up of 40% based on the total

production cost will be result in the total price worth ₱ 67.00.

For 1 gallon, direct material cost per unit is ₱ 71.79; direct labor cost is ₱ 0.004; overhead

cost is ₱ 0.57; total production is ₱ 72.36. Adding a mark-up of 40% based on the total

production cost that will result in the total price worth ₱ 101.00.