For target pricing to operate properly, a firm needs to
A) reach its break-even volume.
B) produce at its full production capacity.
C) receive approval from government regulatory agencies.
D) sell its entire standard volume at specified prices.

Question

Quizplus · Accepted Answer

Target pricing requires a firm to sell its entire standard volume at specified prices to ensure that the costs are covered and the desired profit margin is achieved.

For Target Pricing to Operate Properly, a Firm Needs to