Which profit-oriented pricing method is used because it establishes a benchmark to show how much of a firm's effort is needed to achieve a certain profit?
A) experience-curve pricing
B) target return-on-sales pricing
C) standard markup pricing
D) target profit pricing
E) loss-leader pricing

Question

Quizplus · Accepted Answer

Target return-on-sales pricing is a profit-oriented pricing method that sets prices to achieve a specific percentage of sales as profit, providing a benchmark for the firm's efforts to reach a desired profit level.

Which Profit-Oriented Pricing Method Is Used Because It Establishes a Benchmark