Cost Plus Pricing
Pricing strategy adding fixed markup percentage to unit production costs.
Formula
Selling Price = Unit Cost + (Unit Cost × Markup %)
Real World
A small bakery calculates each loaf costs £1.20 to produce and applies a 67% markup, setting the retail price at £2.00 to cover overheads and generate profit.
Exam Focus
Show full workings in calculation questions; marks are awarded for method even if the final answer is wrong.
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