Which of the Following Are Examples of Elements of Step

question 309

Multiple Choice

Which of the following are examples of elements of Step 3 in the price-setting process?

• A) profit, market share, and survival
• B) estimation of demand, sales revenue, and price elasticity
• C) cost estimation, marginal analysis, and break-even analysis
• D) demand for the product class and brand, newness of the product, and competition
• E) market segmentation, targeting, and positioning

---

Definitions:

Target Profits

The specific amount of net income a company aims to achieve within a certain time frame.

Variable Expenses

Costs that vary in direct proportion to changes in the level of activity or production volume.

Fixed Expenses

Costs that do not change in total over a wide range of activity levels or over a short period, such as rent or salaries.