Question: When a company sets a price for a new product on the basis of what it thinks the product should cost, then develops estimates on

When a company sets a price for a new product on the basis of what it thinks the product should cost, then develops estimates on what each component should cost to meet the proposed price with an acceptable profit margin, the company is practicing:

a. predatory pricing.

b. target costing.

c. strategic pricing.

d. low-cost leadership.

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