Using a Target ROI Pricing Strategy,and Given the Following Information,what

question 72

Multiple Choice

Using a target ROI pricing strategy,and given the following information,what would be the final unit selling price for a product if a manufacturer invests ₤2,000,000 (U.K.) in a product with unit costs of ₤20 each,expected sales of 10,000 units,and has a desire to achieve 6% ROI?

• A) ₤24
• B) ₤30
• C) ₤32
• D) ₤35
• E) ₤42

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Cut

To reduce or decrease the size, amount, or number of something.

Discount

A reduction from the usual cost of something, typically for promotional reasons or to incentivize purchase.

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