the fixed costs per unit of production

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4. Method of accounting for return on investment
If a business needs investments to launch production, then it is necessary to determine the price taking into account the return of personal funds. That is, add a special coefficient to the costs that will cover all expenses.


To better understand the logic of this method, let's look at an example. Let's chile phone number list imagine that a young entrepreneur took out a loan of 200,000 rubles to develop his business at 13% per annum. This is our investment.

In this case, the product sales strategy determines that the entrepreneur can produce 5,000 units of products, and variable costs are equal to 40 rubles per unit of product. Fixed costs are 300,000 rubles.

In this case, will be 300,000 / 5,000 = 60 rubles. The total full costs will be 60 + 40 = 100 rubles for each product. Then the selling price can be calculated using the formula described above:


This is the minimum price at which a product can be sold without making a loss.

Market
These methods of calculating the price are related to the analysis of one or another aspect of the market. For example, competitors or the balance of supply and demand. Let's look at the main methods of calculation in more detail.

1. Focus on competitors
If there is intense competition in the market, then in order for demand for a product to be at a good level, you need to focus on competitors’ prices for similar products.