If a business knows how many units will be sold and what the fixed costs and the variable costs will be, ______ allows the selling price to be set to produce a given rate of return.

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Target-return pricing is a pricing strategy where the selling price is set based on the cost of the product plus a target rate of return on investment. This method is used when a business knows its fixed and variable costs and the number of units it expects to sell.

If a Business Knows How Many Units Will Be Sold