Reseller margins are the main external factor that must be considered by manufacturers. Retailers are the ones who fix the final price to customers. Therefore, manufacturers must suggest retail price by subtracting the profits of resellers who sell the goods to customers. After considering this, manufacturer will know at what price the product should be sold to resellers that helps in the calculation of break even. To determine: The number of flat irons that the manufacturer should sell to reach break-even and the number of flat irons to gain the profit of $800,000. Break-even point analysis: Break-even point analysis is used to show the relationship between the total cost and total revenue to determine profits at several stages of output. The break-even point occurs when total cost and total revenue are equal. Profit is a gain from the business to an organization. The gain for the organization comes from business activities that exceed the costs, taxes, and expenses.

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Chapter 10, Problem 10.13MA

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Reseller margins are the main external factor that must be considered by manufacturers. Retailers are the ones who fix the final price to customers. Therefore, manufacturers must suggest retail price by subtracting the profits of resellers who sell the goods to customers. After considering this, manufacturer will know at what price the product should be sold to resellers that helps in the calculation of break even.

To determine: The number of flat irons that the manufacturer should sell to reach break-even and the number of flat irons to gain the profit of $800,000.

Break-even point analysis:

Break-even point analysis is used to show the relationship between the total cost and total revenue to determine profits at several stages of output. The break-even point occurs when total cost and total revenue are equal.

Profit is a gain from the business to an organization. The gain for the organization comes from business activities that exceed the costs, taxes, and expenses.

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