Target Return Pricing MCQ (Multiple Choice Questions) PDF Download

The price of product is subtracted from variable cost than divided by fixed cost for calculation is

1. unit cost
2. break-even volume
3. target return price
4. target return cost

The technique that allows company to determine the price which helps in yielding targeted return on investment is classified as

1. markup pricing
2. target return pricing
3. target return costing
4. markup costing

If the fixed cost is $80000, variable cost is $10 and the product is sold at $25 then the break-even volume will be

1. 5333
2. 6333
3. 7333
4. 4333

If the unit cost is $30, desired return on sales is 75%, invested capital $60000 and units sold are 20000 then target return price is

1. $45.25
2. $40.25
3. $36.25
4. $32.25

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

1. target return price
2. value pricing
3. perceived pricing
4. target markup price