________ pricing works only if that price actually brings in the expected level of sales.
A) Elasticity
B) Markup
C) Variable
D) Inelasticity
E) Target profit

Question

Quizplus · Accepted Answer

Target profit pricing is based on setting a price that will generate a specific level of profit. However, this pricing strategy only works if the price is set at a level that will actually result in the expected level of sales. If the price is too high and results in low sales, or if the price is too low and results in high costs, then the target profit may not be achieved.

________ Pricing Works Only If That Price Actually Brings in the Expected