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​Jim Is the Sales Manager for a Pharmaceutical Firm

Question 170

Multiple Choice

​Jim is the sales manager for a pharmaceutical firm.His boss has decided that Jim's team will need to earn their annual bonuses by achieving a 10 percent return on the company's investment in a blockbuster cold remedy.During a department meeting,Jim explains this target return in terms of the firm's overall pricing objectives.What is he most likely to say?


A) ​Target return is a way to ensure cost recovery.
B) ​Target return enables the firm to achieve competition objectives.
C) ​Target return enables the firm to achieve profitability objectives.
D) ​Target return is effective as an evaluation tool but is not intended to achieve pricing objectives.
E) ​Target return is a mathematical relationship, not a pricing tool.

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