Target Return Pricing Multiple Choice Questions with Answers – PDF Download

MCQ 1: 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

MCQ 2: 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

MCQ 3: 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

MCQ 4: 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

MCQ 5: 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