Fresnas Designs Inc. is a company known for its quality interior decorations, customized service, and affordable prices. Given the high demand for its service, the management of Fresnas Designs Inc. could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. The management of Fresnas Designs Inc. bases its pricing policy on _____.

Question

Quizplus · Accepted Answer

The management of Fresnas Designs Inc. prefers to price its products to earn a reasonable revenue, indicating that their pricing policy is based on earning satisfactory profits rather than sales maximization or creating retained earnings. The option of status quo pricing is not mentioned in the given information.