The cost is known to be the expense that is related to a particular product or service. This signifies the amount that needs to be spent to produce or to market a product or service that will be offered to various customers. The price is the amount of the product or service that people are willing to spend on. As a customer, you will usually look at the cost of the item first before you would decide if you are going to purchase it or not.
If you have a lot of money to spend, you will not care too much about the price, but you may want to think about the cost of maintaining that product.
Price of a music CD is $12 aand sale value is $15. Quantity ofsales being made is 2,00,000 pieces. Break Even point is where the amount of investment being deployed gets refunded back. The cost price is 2,00,000 $12 = $24,00,000 and the sale price is 2,00,000 $15 = $30,00,000, thus the gain being made is $30,00,000 - $24,00,000 = $6,00,000. We need to find the quantity at which being sold, gets ourinvestment back (ROI). Investment is the cost price, $24,00,000. Sale price is $15, thus the quantity is $24,00,000 divided by $15 per piece, which is 1,60,000 pieces, which will earn back our sales.
Odd even pricing is a technique that involves setting prices in either odd or even pieces.