CHAPTER 2
PRICING
Ryan Nguyen
Pricing Calculations
01
02
03
04
Markups
and
margins
Full costplus pricing
Marginal
cost-plus
pricing
Discounts
Mark-up and margins
Mark-up and margins
Mark-up and margins
Example
Example
Full cost-plus pricing
Full cost-plus pricing
Example
Determining the mark-up percentage
Adjusting the mark-up percentage
Adjusting the mark-up percentage
Determining the mark-up to achieve a required
return on investment
Example
Allowing for inflation when setting selling
prices
Advantages and disadvantages of full cost-plus
pricing
Marginal cost-plus pricing
Example
Advantages and disadvantages of marginal
cost-plus pricing
Discounts
Example
Summary