What is the term for the difference between the sales price needed to capture a predetermined market share and the desired profit per unit?

Question

Quizplus · Accepted Answer

The term for the difference between the sales price needed to capture a predetermined market share and the desired profit per unit is known as target cost. This is the cost that the company has to achieve to ensure that it can capture a predetermined market share while maintaining the desired profit.

What Is the Term for the Difference Between the Sales