Markup Price Equation is a formula used to determine the sale price of a product or service based on its cost. This equation can help businesses understand how much their products should sell for, with the goal of earning a solid profit. Simply put, it’s an equation that takes material costs, manufacturing costs, and overhead costs into account to determine a suggested sales price. By using this equation, business owners can make sure they’re pricing their products competitively while still maintaining a healthy margin. Ultimately, the Markup Price Equation is a valuable tool for ensuring profitability and developing sustainable pricing strategies.