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Markup-on-Cost Pricing Method
Using this method, markup is reflected as a percentage by which initial price is set above product cost as reflected in this formula:
Markup Amount = Markup Percentage
Item Cost
$15 = 30%
$50
The calculation for setting initial price is determined by simply multiplying the cost of each item by a predetermined percentage then adding the result to the cost:
Item Cost + (Item Cost x Markup Percentage) = Price
50 + (50 x .30 = $15) = $65