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Cost-plus pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage (a "markup") to the product's unit cost. Essentially, the markup percentage is a method of generating a particular desired rate of return. [ 1][ 2] An alternative pricing method is value-based pricing.
Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales revenue that is not consumed by variable costs and so contributes to the coverage of fixed costs. This concept is one of the key building blocks of break-even analysis.
Markup (business) Markup (or price spread) is the difference between the selling price of a good or service and its cost. It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit. The total cost ...
In retail, the measure can be used to assess the performance of an individual stock keeping unit, a retail department or the complete business. [ 4 ] : 3 As stock turn (i.e. sales units divided by average inventory units) and Gross Margin Percent can vary heavily by item, market segment, location, and period , GMROII can act as the main driver ...
Profit margin is calculated with selling price (or revenue) taken as base times 100. It is the percentage of selling price that is turned into profit, whereas "profit percentage" or "markup" is the percentage of cost price that one gets as profit on top of cost price. While selling something one should know what percentage of profit one will ...
“The price of electricity went up during the inflation years and hasn’t come down that much.” Housing takes up to 50% of budgets. The shelter index increased 0.4% in July, up 5.1% year over ...
If the maintenance margin changed to 25%, then the customer would have to maintain a net value equal to 25% of the total stock equity. That means that he or she would have to maintain net equity of $50,000 × 0.25 = $12,500. At what price would the investor get a margin call? For stock price P the stock equity would be (in this example) 1,000P.
State law allows Good to seek a recount because McGuire's margin of victory was less than one percentage point. Because the margin was greater than half a percentage point, Good's campaign will be ...