General motors, in order to achieve a 15 to 20 percent profit on its investment, prices its automobiles accordingly. this approach is called ________.

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03-12-2017
Business

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General motors, in order to achieve a 15 to 20 percent profit on its investment, prices its automobiles accordingly. this approach is called ________.

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Kalahira Kalahira · Answer 1 · 2017-12-15T21:10:22+01:00

Kalahira Kalahira

15-12-2017

Target return pricing. The target rate of return pricing is a way of pricing such that you begin with a rate of return objective, such as 8% of sales revenue, and then you adjust the price structure to achieve that target rate. This method is commonly used by market leaders.

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