cost plus pricing

• What does cost plus pricing seek to do?

  cover the costs and provide a good profit margin for the business
• Why is cost plus the most logical approach to the business?

  Achieves the business objective of maximising profits
• Give 2 benefits of cost plus pricing?

  Profitable for the business

  Easiest method of pricing to apply
• What is a drawback of cost plus pricing ?

  Does not take into account the prices of competition