Pricing Functions

In any business a company offers a product for sale. The Paradise Manufacturing Corp. purchases the product or raw material and either make the raw materials into something for sale or distribute the already finished product. In order to make a profit from the sale; each item must be marked-up from its purchase or manufactured cost. These additional dollars added to the product cost is the profit the company HOPES to achieve. The word HOPE is used here because in most companies management does not consider all costs in determining the markup for profit. They will usually guess at a percentage of markup which they HOPE will cover their costs and provide a reasonable profit.