Want to explore how businesses use the cost-plus pricing method to establish the price of their products? In this interactive video, we'll dive into what cost-plus pricing is and how it can be calculated. We'll also explore its advantages and disadvantages as a pricing strategy.

Cost-plus pricing is a method of pricing where a business adds an additional amount of profit to the cost of making a product. This additional amount, known as the markup, is typically a specific percentage of the total cost. Using Paddy O'Connor's fresh lemonade stall as an example, we'll see how he can use cost-plus pricing to determine the price of his product while aiming to make at least a 50% profit at the local arts festival.

By the end of this video, you'll have a thorough understanding of cost-plus pricing, its advantages and disadvantages, and how it can be used to determine the price of products. So, get ready to learn more about this widely used pricing strategy!