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<p>Cost of Production =100Budgeted Overheads =20Profit = ?</p>
Depend on the product if it is new product sales price = cost + profit margin . But if it is already exist then use target costing .
The best way for the sale price of the product is to be sold, an amount equal to the cost of production plus administrative expenses and financial plus profit margin, which is determined by the market price, competition, and fluctuations in exchange rates and the prices of raw materials used in the production of the product and in the worst case and the circumstances inappropriate must achieve product point adjusted and here must the product is sold for $120 more than a certain margin
Cost of production + margin (as per policy and market circumstances like demand and supply)
Again it has to consider that nature of product, market and other competitors offering the price for same product. It may vary according to market ......
Customer Research, Market Research and Market Positioning Research : All focused to determine at what price the customer will be willing and able to buy and how minimum we can offer as Sales Price depending on the market we target and/or positioned.
