A Sales-Oriented Pricing Objective Seeks Some Level of Unit Sales

question 120

True/False

A sales-oriented pricing objective seeks some level of unit sales, dollar sales, or share of market-without referring to profit.

Comprehend how various factors, including income, prices of related goods, and external influences like health benefits, affect the demand and supply curves.

Recognize the economic effect of changes in price on quantity demanded versus shifts in the demand curve.

Understand market equilibrium and the effects of supply and demand changes on equilibrium price.

Analyze the impact of external factors, such as technological advancements or resource price changes, on market supply and demand.

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Definitions:

Break Even

Break even refers to the point at which total costs and total revenue are equal, resulting in no net loss or gain and the initial investment is recovered.

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.

Contribution Margin Ratio

A financial metric that shows the percentage of revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profits.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point, indicating the cushion against losses.