The method of pricing in which desired return is multiplied to invested capital divided by unit sales and unit cost is added into result is classified as _________?
Correct answer: A. target return price
- A. target return price
- B. value pricing
- C. perceived pricing
- D. target markup price
Explanation
Target-return pricing adds the required return per unit, calculated as desired return multiplied by invested capital and divided by expected unit sales, to the unit cost. Target markup pricing instead applies a markup percentage to cost.
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