Chapter 22 Pricing and Profitability Analysis

After studying this Chapter 22 Pricing and Profitability Analysis, you should be able :

1. Discuss basic pricing concepts.
2. Calculate a markup on cost and a target cost.
3. Discuss the impact of the legal system and ethics on pricing.
4. Explain why firms measure profit, and calculate measures of profit using absorption and variable costing.
5. Determine the profitability of segments.
6. Compute the sales price, price volume, contribution margin, contribution margin volume, sales mix, market share, and market size variances.
7. Discuss the variations in price, cost, and profit over the product life cycle.
8. Describe some of the limitations of profit measurement.

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