Which of the Following Is an External Factor That Affects

question 3

Short Answer

Which of the following is an external factor that affects pricing decisions?
the salaries of production management
competition
the salaries of finance management
overall pricing objectives
the company's overall marketing strategy

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Definitions:

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the sales price per unit minus variable cost per unit.

Fixed Costs

Costs that do not vary with the volume of output, such as rent, salaries, and insurance.

Target Net Profit

The desired bottom-line profit that a company aims for after all expenses have been subtracted from revenue.

Safety Margin

The difference between your actual or projected sales and the sales level needed to break even.