Target profit pricing uses the concept of a(n)________,which shows the total cost and total revenue expected at different sales volume levels.
A) value-based chart
B) break-even chart
C) competition-based chart
D) demand curve
E) experience curve

Question

Quizplus · Accepted Answer

Target profit pricing uses the break-even chart concept, which shows the total cost and total revenue expected at different sales volume levels, to determine the sales volume needed to reach the desired profit level. The break-even point is where total revenue equals total cost, and beyond this point, the company can start earning a profit. Therefore, B is the correct answer. The other options are not related to the concept of target profit pricing.

Target Profit Pricing Uses the Concept of A(n)________,which Shows the Total