A Target Return Figure of Zero Implies

question 255

Multiple Choice

A target return figure of zero implies:

• A) setting negligible sales targets.
• B) setting a price level that will just recover costs.
• C) setting a price that helps attain previous year's high profitability.
• D) setting a price that would match the industry standard profit margin.
• E) setting a price at which competition will be zero.

---

Definitions:

Quantity Demanded

The specific amount of a good or service that consumers are willing and able to buy at a particular price.

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its previous value, usually expressed as a percentage.

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.

Completely Inelastic

A situation in which the demand or supply for a good or service is totally unresponsive to price changes.