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Describe cost plus pricing with example.
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written 3.5 years ago by
prajapatijaimin
• 3.3k
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• modified 3.5 years ago |
Solution:
- There are several ways of determining cost, and the profit can be added as either a percentage markup or an absolute amount. One example is:
P = (AVC + FC%) x (1 + MK%)
Where:
P = price
AVC = average variable cost
FC% = percentage allocation of fixed …
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