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How is the RRP of a paperback book calculated?

The RRP will be calculated after unit cost has been determined, and we ensure that the RRP is always set at a price that means that the book will be profitable via all sale methods. The unit cost cannot be determined until the formatting stage (when page count is calculated) and an approximate cannot be particularly given before a book is confirmed, as there are too many variables (size and style of font, line spacing, no. of matter pages to be included). 

Although we advise on a suitable RRP (in terms of what level of royalties this is likely to provide), the author always has the final decision on the book's RRP. We believe that it is very important that the author makes the decision regarding RRP, as so many publishing companies make the decision for the author and this can negatively impact an author's sales. 

Related Questions: eBook and Paperback Publication (Distribution)