1. What is Fixed Price?

Fixed price is the final selling price of a product or service calculated by adding the cost and markup. It represents the amount a customer will pay for an item.

2. How Does the Calculator Work?

The calculator uses the fixed price formula:

Where:

• \( Cost \) — The original cost of the product/service
• \( Markup \) — The additional amount added to the cost

Explanation: The formula simply adds the markup amount to the original cost to determine the final selling price.

3. Importance of Fixed Price Calculation

Details: Calculating fixed price is essential for businesses to ensure profitability, set competitive prices, and maintain consistent pricing strategies.

4. Using the Calculator

Tips: Enter the cost and markup amounts in dollars. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between markup and margin?
A: Markup is added to cost to determine price, while margin is the percentage of the final price that is profit.

Q2: How do I determine the right markup amount?
A: Markup depends on industry standards, competition, and desired profit margins. Common markups range from 20% to 50%.

Q3: Can fixed price change over time?
A: While called "fixed," prices may need adjustment due to changes in costs, market conditions, or other factors.

Q4: Should I include all costs in the calculation?
A: Yes, include all direct and indirect costs to ensure your price covers all expenses and provides profit.

Q5: How does this differ from variable pricing?
A: Fixed price remains constant, while variable pricing changes based on conditions like demand or purchase quantity.