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Marketing - Chap 13 Terms

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

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