ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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target rate of return is similar to
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mark up
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marginal cost
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tender pricing
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competition
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Explanation:
Detailed explanation-1: -The company manufactures pencils and have already invested Rs 10, 00, 000 in the business. The cost of each pencil is Rs 16. Here, we are assuming that sales can hit 50, 000 units in a year. The target return price would be = 16 (cost) + (20%*10, 00, 000 (investment))/50, 000 (sales) = Rs 20.
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