Inputs to Pricing Decisions

Pricing decisions tend to heavily involve analysis regarding marginal contributions to revenues and costs.

Fixed costs are business expenses that are not dependent on the level of goods or services produced by the business.

The break-even point is the point at which costs and revenues are equal.

For the vast majority of business entities, the ultimate objective should be to increase profits, often through a better pricing strategy.

Factors to consider in pricing include Economic Value added to Customers (EVC), competitor's pricing, and government regulations.