Cost Plus Pricing
Pricing strategy adding fixed markup percentage to unit production costs.
Formula
Selling Price = Unit Cost + (Unit Cost × Markup %)
Real World
A bakery calculates each loaf costs £1.20 to produce and adds a 50% markup, selling it for £1.80 — ensuring all costs are covered with a guaranteed margin.
Exam Focus
Always show the markup calculation step-by-step; 'calculate' questions require working shown for full marks.
How well did you know this?