Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels.
A) BCG matrix
B) break-even chart
C) SWOT analysis
D) demand curve
E) experience curve

Question

Quizplus · Accepted Answer

Target return pricing involves determining the total cost associated with producing and selling a product, as well as the expected revenue at different levels of sales volume. This information is typically presented in a break-even chart, which shows the sales volume required to break even at different price points. By setting a target return (e.g. a specific profit margin), the company can then use the break-even chart to determine the optimal price to charge for the product.

Target Return Pricing Uses the Concept of A(n) ________, Which