Target return-on-investment pricing is:
A)setting the price of a line of products at a number of different price points.
B)adding a fixed percentage to the cost of all items in a specific product class.
C)setting prices to achieve a profit that is a specified percentage of the sales volume.
D)setting prices to achieve a specified percentage return-on-investment.

Question

Quizplus · Accepted Answer

Firms such as General Motors and many public utilities use target return-on-investment pricing to set prices to achieve a return-on-investment (ROI) target, such as a percentage that is mandated by its board of directors or regulators.

Target Return-On-Investment Pricing Is