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The price of the product is made up from a number of characteristics: the component costs, the labor costs (what it takes to assemble the product), marketing costs, shipping costs. Marketing costs include raising awareness of the product and advertising campaigns combined with package design. Shipping includes all the transportation of the product from the place it is manufactured, to the company storages and to the retailers through a complex distribution chain. Taxes are not always included as regular expenses, as some companies pay taxes based on the volume of sales, and other based on the revenue gained...
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