Answer :

most pricing objectives based on return on investment are achieved by trial and error because not all cost and revenue data are available when prices are set.

What is Return on investment?

Return on Investment calculates the profit or loss based on the capital invested. For the purpose of analyzing an organization's profit or the returns on various investments, ROI (Return on Investment) is typically represented as a percentage. Simply put, return on investments calculates what you get back in relation to what you put in. A performance metric known as return on investment (ROI) is used to assess an investment's returns or to compare the relative efficacy of various investments. ROI calculates the return on an investment in relation to the investment's cost.

Different methods of calculating return on investment can be used to determine a company's profitability. A business can use it to project investments in inventory, pricing strategy, capital equipment, etc.

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