price | | costs that remain stable at any production level within a certain range |
volume or sales objectives | | the amount of funds required to purchase a product |
competition objectives | | using the product cost plus a target markup percentage to calculate the sales price |
prestige pricing | | the portion of sales revenue left over after paying product costs |
cost-based pricing | | the relationship between prices, demand, and overall profitability |
markup | | the method for determining the amount of product that must be sold at a given price to generate sufficient revenue to cover total costs - both fixed and variable |
margin | | picing practices aimed at achieving a particular sales volume or market share |
variable costs | | costs that change with the level of production |
fixed costs | | pricing practices intended to maintain pricing parit or emphasize overall product value to avoid direct price comparison |
breakeven analysis | | the cost multiplied by one plus the target markup percentage |
cost-volume-profit (CVP) | | establishing a relatively high price to develop and maintain an image of quality and exclusiveness |