Break-even pricing,or a variation called ________ pricing,is when the firm tries to determine the price at which it will break even or make the profit it is seeking.
A)competition-based
B)target return
C)fixed cost
D)value-based
E)customer-based

Question

Quizplus · Accepted Answer

Target return pricing is the variation of break-even pricing which enables the company to set a price that will allow them to earn the desired amount of profit. It takes into account the fixed costs, variable costs, and the desired profit of the firm. Hence, option B is the correct answer. A is incorrect as competition-based pricing is when the firm considers the prices of its competitors while setting the price. C is incorrect as fixed cost pricing is not a variation of break-even pricing. D is incorrect as value-based pricing is when the firm sets the price based on the perceived value of the product by customers. E is incorrect as customer-based pricing is when the firm sets the price based on the perceived value of the product by customers.

Break-Even Pricing,or a Variation Called ________ Pricing,is When the Firm