Explore what cost plus pricing is with this video and free worksheet covering the basics of a cost plus pricing.
The 3 minute explainer video explains that cost plus pricing is a pricing strategy used by businesses to determine the selling price of a product or service. It is when a business either purchases or manufactures a product for a certain cost and then adds on the profit margin it wants to make. The cost of the product plus the profit margin equals the selling price.
The accompanying worksheet has a number of questions that are designed to check a student’s understanding of cost plus pricing.
The resource also includes suggested answers and is ideal to be used in class to introduce the subject or as a homework task.
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