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:

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:

Citation

Markup-on-Cost Pricing Method   (2022).   From Setting Price: Part 1 Tutorial. KnowThis.com.   Retrieved   August 18, 2022  from   https://www.knowthis.com/setting-price-part-1/markup-on-cost-pricing-method/