Target profit pricing refers to
A) adjusting the price of a product so it is "in line" with that of its largest competitor.
B) setting an annual target of a specific dollar volume of profit.
C) setting the price of a line of products at a number of different price points.
D) adding a fixed percentage to the cost of all items in a specific product class.
E) setting prices to achieve a profit that is a specified percentage of production costs.

Question

Quizplus · Accepted Answer

Target profit pricing involves setting an annual target of a specific dollar volume of profit, which guides the pricing strategy to achieve that profit goal.

Target Profit Pricing Refers to