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Cost and Price are not the same.
Cost is the amount incurred on the inputs (raw materials, salaries, rent, interest, taxes, duties, etcโฆ) for producing any product. Itโs the amount of money spent by the company in the manufacturing of a product or creation of a service.
Things like your computer operating cost, any software subscriptions, risks, delays, mishaps etc. are NOT included in the cost.
All profit is derived from RISK. - Peter Drucker
Profit is adjusted by taking things like below into account:
And, after considering all these RISKS, you increase the profit margin and hence the PRICE of the product.