Cost Plus Pricing Solution

STEP 0: Pre-Calculation Summary
Formula Used
Cost Plus Pricing = Break Even Price*Profit Margin Goal
CPP = BEP*PM
This formula uses 3 Variables
Variables Used
Cost Plus Pricing - Cost Plus Pricing is a pricing strategy by which the selling price of a product is determined by adding a specific fixed percentage to the product's unit cost.
Break Even Price - Break Even Price refers to the total cost of development, production and marketing of the product.
Profit Margin Goal - Profit Margin Goal is a common measure of the degree to which a company or a particular business activity makes money.
STEP 1: Convert Input(s) to Base Unit
Break Even Price: 48 --> No Conversion Required
Profit Margin Goal: 25 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
CPP = BEP*PM --> 48*25
Evaluating ... ...
CPP = 1200
STEP 3: Convert Result to Output's Unit
1200 --> No Conversion Required
FINAL ANSWER
1200 <-- Cost Plus Pricing
(Calculation completed in 00.004 seconds)

Credits

Created by Kashish Arora
Satyawati College (DU), New Delhi
Kashish Arora has created this Calculator and 25+ more calculators!
Verified by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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6 Financial Metrics Calculators

Compound Annual Growth Rate
Go Compound Annual Growth Rate = (((Ending Value/Starting Value)^(1/Number of Years to Track Growth))-1)*100
Customer Selling Price
Go Customer Selling Price = Cost Price+(Profit Margin Percentage*Cost Price)
Return on Invested Capital
Go Return on Invested Capital = Net Operating Profit After Tax/Total Invested Capital
Days Sales Outstanding
Go Days Sales Outstanding = (Average Account Receivables/Total Net Credit Sales)*365
Days Payables Outstanding
Go Days Payables Outstanding = (Average Account Payables/Cost of Goods Sold)*365
Cost Plus Pricing
Go Cost Plus Pricing = Break Even Price*Profit Margin Goal

Cost Plus Pricing Formula

Cost Plus Pricing = Break Even Price*Profit Margin Goal
CPP = BEP*PM

What is Cost Plus Pricing?

Cost Plus Pricing is also known as markup pricing. It's a pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product (unit cost). The resulting number is the selling price of the product.
This pricing method looks solely at the unit cost and ignores the prices set by competitors. For this reason, it's not always the best fit for many businesses because it doesn't take external factors, like competitors, into account.

How to Calculate Cost Plus Pricing?

Cost Plus Pricing calculator uses Cost Plus Pricing = Break Even Price*Profit Margin Goal to calculate the Cost Plus Pricing, The Cost Plus Pricing formula is defined as the strategy by which the selling price of a product is determined by adding a specific fixed percentage to the product's unit cost. Cost Plus Pricing is denoted by CPP symbol.

How to calculate Cost Plus Pricing using this online calculator? To use this online calculator for Cost Plus Pricing, enter Break Even Price (BEP) & Profit Margin Goal (PM) and hit the calculate button. Here is how the Cost Plus Pricing calculation can be explained with given input values -> 25000 = 48*25.

FAQ

What is Cost Plus Pricing?
The Cost Plus Pricing formula is defined as the strategy by which the selling price of a product is determined by adding a specific fixed percentage to the product's unit cost and is represented as CPP = BEP*PM or Cost Plus Pricing = Break Even Price*Profit Margin Goal. Break Even Price refers to the total cost of development, production and marketing of the product & Profit Margin Goal is a common measure of the degree to which a company or a particular business activity makes money.
How to calculate Cost Plus Pricing?
The Cost Plus Pricing formula is defined as the strategy by which the selling price of a product is determined by adding a specific fixed percentage to the product's unit cost is calculated using Cost Plus Pricing = Break Even Price*Profit Margin Goal. To calculate Cost Plus Pricing, you need Break Even Price (BEP) & Profit Margin Goal (PM). With our tool, you need to enter the respective value for Break Even Price & Profit Margin Goal and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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