Cost-plus pricing involves setting a product's price based on fixed costs,variable costs,plus the desired profit margin for each item.

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Cost-plus pricing is a common pricing strategy where the cost of producing a product or service is calculated, and a profit margin is added to determine the final price. The cost includes both fixed costs (such as rent, salaries, and other overhead expenses) and variable costs (such as raw materials and labor). The profit margin is usually a predetermined percentage of the cost, which ensures that the company makes a profit on each sale.

Cost-Plus Pricing Involves Setting a Product's Price Based on Fixed