What is the formula for calculating marginal cost-plus pricing?

Asked 3 years ago

Hi, how do I calculate marginal cost-plus pricing?

Pricing strategy Product prices Marginal cost-plus pricing Marginal cost-plus pricing

Ronald Lewis

Tuesday, February 22, 2022

Marginal cost is the inclusion of the total cost and additional cost acquired from producing more product units. This method is helpful in no business days. To calculate the marginal cost-plus pricing, you must know if there is any change in production cost and the number of units produced. When the items produced decrease or increase, the marginal cost will vary. You can calculate it by dividing the change in production costs from the change in the number of goods produced.
The formula to calculate marginal cost-plus pricing is:
Marginal cost = Change in Production Cost/Change in Output