Multiple Choice
Phoenix Co. wanted to achieve a 20 percent return on an investment of $2 million during the coming year. Last year total costs for its product were $200,000, and 40,000 units were sold. The company expects to sell the same number of units in the coming year. Using target return pricing, what price should it charge for its product?
A) $5.
B) $10.
C) $15.
D) $20.
E) Cannot be determined from the information provided.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: Break-even analysis evaluates whether the firm will
Q36: "Stockturn rate" means:<br>A) the number of days
Q37: Break-even analysis<br>A) assumes that the demand curve
Q39: Which of the following applies to "value
Q40: Vanguard Corp. uses target return pricing and
Q65: Customers tend to be more price sensitive<br>A)
Q238: A disadvantage of average-cost pricing is that
Q241: A producer makes an item for $32
Q257: The idea that people will pay extra
Q268: Identify a weakness of the average-cost approach.<br>A)