Then the total expenses should be divided by the total number of manufactured products.cost of raw materials + labor cost + overhead expenses divided by the number of output productsAnother way of determining the wholesale price is by conducting research on the average cost of the product when it comes to retail pricing. Some businessmen calculate the retail price through this method:materials + labor + overhead + profit X 2 = retail price$10 + $10 + $10 + ($10 X 2) = $50Given the example silver rings engagement ring, if the prevailing retail price is $50 and the break even price is $6, it means that the retailers are charging their customers more than eight times than the product’s original amount. Theoretically, it is possible to charge retailers or set the wholesale price between $9 or $10.
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