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Break Even Pricing (target return pricing) Definition and Explanation PDF Download

Learn Break Even Pricing (target return pricing) definition in marketing with explanation to study “What is Break-Even Pricing (target return pricing)”. Study break even pricing (target return pricing) explanation with marketing terms to review marketing course for online MBA programs.

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) Explanation:

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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