In target pricing, it is assumed that half of the standard volume will be sold at the target price.

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In target pricing, the assumption is not specifically that half of the standard volume will be sold at the target price. Instead, target pricing involves setting a price based on what customers are willing to pay and then working backward to ensure the product can be produced within a cost that allows for a desired profit margin. The focus is on market-driven pricing and cost management, rather than on a predetermined volume of sales at the target price.

In Target Pricing, It Is Assumed That Half of the Standard