Target Return-On-Sales Pricing Refers to

question 251

Multiple Choice

Target return-on-sales pricing refers to

• A) adjusting the price of a product so it is "in line" with that of its largest competitor.
• B) setting the price of a line of products at a number of different price points.
• C) adding a fixed percentage to the cost of all items in a specific product class.
• D) setting prices to achieve a profit that is a specified percentage of the sales volume.
• E) setting a price based on a specific annual dollar target profit volume.

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Definitions:

Purchasing Power

The ability of an individual or group to buy goods and services, often considered in terms of the amount of goods and services that one unit of currency can buy.

Real Interest Rate

Adjusted interest rate for inflation, reflecting the true cost of borrowing or the real yield on savings.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the raw interest percentage that lenders charge borrowers for the use of money.

Inflation Rate

The speed at which the aggregate price level for goods and services goes up, undermining the power of purchasing.