Concept Introduction:
Target Pricing: In Target pricing the pricing of services/product is fixed first. The pricing is fixed on the basis of
Cost Plus Pricing: In Cost Plus Pricing , the Pricing is decided on the basis of Cost based method. In this first of all variable and fixed cost is added to get total cost . In total Cost the desired profit margin is added to get the pricing of a product.
Requirement1
1. Approach to Pricing Rouse Builders should emphasize.
Requirement 2
1. Whether Rouse Builder able to achieve target profit
Requirement 3
1. The New Cost Plus Price per Home
2. Should Company able to differentiate its product
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Chapter 25 Solutions
ACCOUNTING PRINCIPLES 122 5/16 >C<
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