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any company have its way in pricing , some companies have an estimated sales price , or very competitors with a same sales price, in that case the cost of the product should be less than sales revenue with a profit margin without it affect on quality and in this case they should use the kiezen method in cost reduction .
Ex: company A produce a product that is being sold in 10 $ and the profit margin is30% so the cost should be less than7 $ .
also other companies use the method of adding the profit margin over the total cost if they have something as an open market .
Ex : Company B produce a product that costs10 $ for each unit , they have a profit margin40 % so the price will be14$
