If a Business Knows How Many Units Will Be Sold

question 122

Multiple Choice

If a business knows how many units will be sold and what the fixed costs and the variable costs will be, ______ allows the selling price to be set to produce a given rate of return.

• A) cost-plus pricing
• B) target-return pricing
• C) penetration pricing
• D) reference pricing

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Definitions:

Asch's Studies

A series of experiments conducted by Solomon Asch focusing on the effects of peer pressure on conformity, demonstrating how individuals yield to or defy a majority group.

Conformity

The act of aligning one's beliefs, behaviors, or attitudes to match those of a group or societal norms.

Conformity

Adjusting one's behavior or thinking to match those of other people or a group standard.

Asian Countries

Nations located on the continent of Asia, including, but not limited to, China, India, Japan, and South Korea.