In target pricing,the target sales price is the ________.
A)total product cost incurred in producing a product
B)net profit desired by the company
C)amount customers are willing to pay for a product or service
D)price calculated by deducting the desired net profit from the total production cost

Question

Quizplus · Accepted Answer

In target pricing, the target sales price is determined by the amount customers are willing to pay for a product or service. This price is then used to calculate the total product cost that the manufacturer can incur to make a profit at that sales price. The net profit desired by the company is taken into account when calculating the total product cost, but it is not the target sales price itself. Therefore, the correct answer is C.

In Target Pricing,the Target Sales Price Is the ________