Target profit pricing is:
A)setting a price based on a specific annual dollar target volume of profit.
B)adding a fixed percentage to the cost of all items in a specific product class.
C)setting the price of a line of products at a number of different price points.
D)setting prices to achieve a profit that is a specified percentage of the sales volume.

Question

Quizplus · Accepted Answer

Target profit pricing involves setting a price that will allow the company to reach a specific annual dollar target volume of profit. This approach takes into consideration factors such as cost of goods sold, operating expenses, and desired profit margin to determine the price that will achieve the target profit.

Target Profit Pricing Is