Surcharge calculation

The mark-up calculation is also known as "mark-up pricing" and is primarily cost-based pricing. Accordingly, the companies first calculate their costs, i.e. wages, interest and the prices for the necessary preliminary products. Then they add a mark-up to the sum of these costs for their product that corresponds to their desired profit. The result is the price.

The profit premium is variable depending on the economic situation. When the economy is bad, companies will charge lower surcharges and when the economy is better, higher surcharges. But only a company that has sufficient market power is able to demand and enforce the prices calculated in this way on the market. With full competition, it would have to accept a given market price and adjust its costs.

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