Jersey’s Smoothie Bar has decided to set its pricing structure based on an annual percentage of the amount earned as a result of financial investment as a quantifiable means to gauge the success of their pricing. This pricing structure is known as .

A) target return on investment pricing. B) market-share pricing. C) status-quo pricing. D) survival pricing.

A. target return on investment pricing.

Explanation:

Firms or individuals usually expects profit from investment in their business. They would fix price for product that would yield desired return for certain quantities sold. This called target return on investment pricing

For a firm to achieve target return on investment, various circumstances should be reviewed in order to know the implication of each on sales and profit desired. For instance, price that would bring target return on investment should be considered.

One of the benefit of target return on investment pricing is that it helps a business focus on how to make profit .

If a company's sales is not adding up, then price needs to be adjusted so that set target can be achieved.

correct, but each time you dont pay the price of the penalty can increase.