What Is Critical When Using Target Profit Pricing

question 65

Multiple Choice

What is critical when using target profit pricing?

• A) demand that is insensitive to price over the range being considered
• B) a higher-than-average price compared to competitors
• C) a low potential for currency exchange rates to change
• D) a lower-than-average price compared to competitors
• E) a new or innovative product

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Definitions:

Procedural Unconscionability

A legal term referring to a situation where the terms of a contract are so unfair or the process is so unequal that it shocks the conscience.

Substantive Unconscionability

Refers to a condition in contract law where the terms of a contract are extremely unfair or one-sided in favor of the party who has the superior bargaining power.

Administrative Costs

Expenses related to the general operation of an organization, such as salaries of non-production staff, office supplies, and utilities.

GDP

Gross Domestic Product, a financial measure representing the total market value of all final goods and services produced within a country in a given period.