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

Question

Quizplus · Accepted Answer

Target return-on-sales pricing is a pricing strategy in which prices are set to achieve a profit that is a specified percentage of the sales revenue. This approach is commonly used by companies that have a specific profit margin target they want to achieve. By setting prices to reach this target, companies can ensure that they are earning a desired level of profit on each sale. Other pricing strategies, such as cost-plus pricing (adding a fixed percentage to the cost of all items in a specific product class) or value-based pricing (pricing a product based on the perceived value it provides to customers), may not take into account the desired profit margin of the company.

Target Return-On-Sales Pricing Refers to