Answered: 1. In what types of decisions can…

1. In what types of decisions can break-even analysis help managers? 2. How can break-even analysis help in making pricing decisions? 3. Differentiate between fixed and variable costs.

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Concept explainers

Customary Pricing

There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:

Multiple Unit Pricing

“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”

Question

1. In what types of decisions can break-even analysis help managers?
2 How can break-even analysis help in making pricing decisions?
3. Differentiate between fixed and variable costs.
4 Explain the meanur

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