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What Should the Price Steps of Product Line Pricing Take

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What should the price steps of product line pricing take into account?


Definitions:

Net Income

The amount of earnings left over after all expenses and taxes have been subtracted from total revenue.

Dividends

Payments made by a corporation to its shareholders, out of its profit or reserves, usually on a regular basis.

Investment

The allocation of resources, usually money, in order to earn income or profit over time.

Partial Equity Method

An accounting method used when an investing company has significant influence over, but not full control of, another company, requiring the investor to record its share of profits.

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