If a business knows how many units will be sold and what the fixed costs and the variable costs will be, ______ allows the selling price to be set to produce a given rate of return.

A) cost-plus pricing
B) target-return pricing
C) penetration pricing
D) reference pricing

Target-Return Pricing

A pricing strategy where the price is set to achieve a targeted return on investment or profit over costs.

Cost-Plus Pricing

A pricing strategy where the selling price is determined by adding a specific markup to a product's unit cost, ensuring a profit margin is achieved.

Penetration Pricing

A pricing strategy where a product is offered at a low price to gain market share quickly.