Break Even Pricing (target return pricing) Lecture Notes with Definitions PDF Download
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Break Even Pricing (target return pricing) Definition:
Setting price to break even on the costs of making and marketing a product or setting price to make a target return.
Principles of Marketing by Philip T. Kotler, Gary Armstrong
Break Even Pricing (target return pricing) Notes:
It is a technique to determine the price depends on the basis of a target rate of return on the investment. It can easily be calculated by using (total fixed cost / production unit volume + variable cost per unit). This method enables an organization to calculate return on investment.
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