Cost to the seller

Cost to the seller - up by the same percent. Cost-plus...

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What is the cost to the seller? What is the cost to the seller? One of the two critical determinants of price.
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So, which cost? So, which cost? Total cost Fixed cost Variable cost Marginal cost
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A side note: Marginal analysis A side note: Marginal analysis Marginal cost is the cost of making one more unit. Marginal revenue is the income from selling one more unit. Profit is maximized at the point where marginal cost equals marginal revenue.
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Standard markup Standard markup
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Standard Markup Standard Markup Used in retail situations – drug and grocery stores – when calculating individual product demand is impossible. Everything in the same class (dairy products, for example) gets marked
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Unformatted text preview: up by the same percent. Cost-plus Cost-plus Used in large construction projects or for very large items (airplanes) when it is difficult to accurately predict the final cost. Cost plus a percentage Architects Interior designers Cost plus fixed-fee Defense contractors Keystoning Keystoning The retailer doubles the wholesale price. Traditionally this has been called a 50% mark-up. Competition has caused this approach to disappear. Cost based prices are: Cost based prices are: Easy to administer But dont reflect Customer perceptions of value Competitors prices...
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Cost to the seller - up by the same percent. Cost-plus...

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