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Discusses the concept of cost plus pricing. This is the concept of taking the actual purchase price of the item and marking it up by

Discusses the concept of cost plus pricing. This is the concept of taking the actual purchase price of the item and marking it up by a percentage, say 10%. The markup helps the company cover their other costs including salaries, rent etc. Some pricing promotions are difficult to understand. Some department stores offer coupons up to 30% off a purchase. In addition, they may have a sale where if the consumer spends $50 or more, they receive $10 in store coupons to be used later. In this type of example, the store is hoping individuals will spend in volume to take advantage of the sale. It does get harder to determine if the store has made a profit on a particular item. Do you agree or disagree?

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