What Are the Two Main Pricing Objectives in Corporate Pricing

question 144

Short Answer

What are the two main pricing objectives in corporate pricing?
Market share and company image
Advertising and sales promotion
Company survival in a competitive marketplace and profit maximization
Market share and profit maximization
Advertising and profit maximization

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Definitions:

Dollar Sales

The total value of goods or services sold, measured in dollars, within a specific period of time.

Target Profit

The desired net income a company aims to achieve within a specific period.

Contribution Margin Ratio

The contribution margin ratio is the percentage of each sales dollar remaining after deducting variable expenses, indicating how much of each dollar contributes to fixed expenses and profit.

Operating Leverage

An indicator of the way in which growth in revenue results in an increase in operating profit, revealing the ratio of fixed to variable expenses within a business.