ASSERTION: An adequate return on investment or net sales is an important pricing objective. REASONING: To secure a sufficient return on capital employed after covering costs of production and distribution.

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A is true, and R is the correct explanation for A. Explanation: Both A and R are true, and R correctly explains A because target‑rate‑of‑return pricing sets prices so that total revenue exceeds total cost by the needed profit, securing a sufficient return on capital employed after production and distribution expenses.

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