In Target Pricing,the Target Price Is the ________

question 74

Multiple Choice

In target pricing,the target price is the ________.

• A)total product cost incurred in producing a product
• B)net profit desired by the company
• C)amount customers are willing to pay for a product or service
• D)price calculated by deducting the desired profit from the total production cost

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Definitions:

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a period.

Days' Sales In Inventory

A financial ratio that measures the average number of days a company takes to sell its inventory.

Sales Trend Percent

A metric that measures the percentage change in sales over a specific period, indicating growth or decline trends.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations based on its current income.