In target-return pricing, the firm determines the markup required and adds that amount to the fixed cost of the product.

Name: In target-return pricing, the firm determines the markup required and adds that amount to the fixed cost of the product.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In target-return pricing, the firm determines the price by adding a markup to the total cost (both fixed and variable costs) of the product to achieve a target return on investment, not just to the fixed cost.

In Target-Return Pricing, the Firm Determines the Markup Required and Adds