It is a measure of statistical dispersion. Variance also describes the way numbers fluctuate around the mean.
Target rate of return = $156,000 / $1,040,000 = 15%
<h2>
What is target rate return?</h2>
Market leaders or monopolists nearly exclusively use the pricing method known as target rate of return pricing. Rate of return pricing is a technique used by businesses to set product prices in a way that eventually helps them achieve their main objective or return on invested capital.
<h3>What is target return and exchange policy?</h3>
- According to Target's regular return policy, you have 90 days from the date of purchase to return an item for a full refund or exchange. Most of the time, you'll receive your refund in the same payment method that you first used to make the transaction. In rare circumstances, you might have to accept an exchange if the product has been used or is damaged.
- By using the goal rate of return on investment, or what the company anticipates from the venture's investments, the firm sets the price for a product or service. The rate of return pricing helps the business generate the necessary amount of profit to keep its liquidity. The price is set so that if sales continue to grow at the rate they are now, the ultimate objective of creating corporate profit is achieved.
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Answer:
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Answer:
The correct answer is b. the price of a good times the quantity of the good that is sold.
Explanation:
Total income (IT): is simply the price of a good multiplied by the quantity of that good sold. The sum of the income obtained from the sale of all the units produced or the total amount that a company receives for the sale of its product: the unit price for the quantity of product that the company decides to produce.
It is calculated as the price of the good multiplied by the quantity sold.
When the price is reduced, what happens to income, that is, whether it increases or decreases, will depend on the quantity demanded increasing enough to counteract the effect of the price reduction. For a competitive (price-taking) company in the product market, Total Revenue is simply proportional to production.