Question

Fresnas designs inc. is a company known for its quality interior decorations, customized service, and affordable prices. given the high demand in the market for its service, the management of fresnas designs inc. could price its products higher, but it prefers to price its products such that it will earn a reasonable revenue. in this case, the management of fresnas designs inc. bases its pricing policy on:

Answer 1

Earning Satisfactory Profits

Step-by-step explanation:

Fresna's designs inc. is generally known for it's high quality interior decorations. They price their products in the market at nominal rates to earn satisfactory profits. As satisfactory profits represent to a sensible dimension of profits that is steady with the dimension of hazard an organization faces. These profits help to break-even and help in covering all the costs of the company. Even though the company can earn high profits by increasing it's price they are playing safe in the market by basing their pricing policy on earning satisfactory profits.