What is a common goal of using markup pricing?

The common goal of using markup pricing is to cover costs and ensure profit. This pricing strategy involves adding a specific percentage or amount to the cost of producing a product to determine its selling price. By setting a markup, businesses can guarantee that all the costs associated with manufacturing, raw materials, labor, and overhead are covered. Additionally, the markup allows for a profit margin that can sustain the business's operations and facilitate growth.

This approach is often used by retailers and wholesalers as it provides a straightforward method of pricing while also closely aligning the price with the cost of goods sold. It enables businesses to achieve financial sustainability by ensuring that prices are set at a level that supports both cost recovery and profitability. The simplicity of this method makes it a popular choice in various industries.