Setting an annual target of a specific dollar volume of profit is referred to as _________.
A)target profit pricing
B)target return on investment
C)loss leader pricing
D)at, above, or below market pricing
E)yield management

Question

Quizplus · Accepted Answer

Setting an annual target of a specific dollar volume of profit is called target profit pricing. Target return on investment (B) is when the company sets a specific percentage return on its investment in a product. Loss leader pricing (C) is when a company offers a product at a loss to attract customers to additional profitable products. At, above, or below market pricing (D) is when the company prices its product based on market prices. Yield management (E) is a pricing strategy used by service-oriented companies to maximize revenue by varying prices based on demand.

Setting an Annual Target of a Specific Dollar Volume of Profit