Methods of calculating the selling price of the company is based mainly on the cost and profit estimate:Product selling price = cost + profit products expectedWith this valuation method, the cost is a key factor in the price and the competitive element of the price. If the fixed sale price, costs spent to lower its product business, the profits of the higher and vice versa. Besides, when the cost of a product is low, in the case of severe market competition, the company can shrink the profits of the product back to lower the selling price down a little bit to help enhance the competitive
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