Business Essentials, Student Value Edition Plus MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
Business Essentials, Student Value Edition Plus MyLab Intro to Business with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134473970
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
bartleby

Concept explainers

Question
Book Icon
Chapter 12, Problem 12.1QR
Summary Introduction

To explain: How do break-even analysis aid managers to measure the potential impact of prices.

Introduction:

Break-even analysis:

A break-even analysis will aid a firm to calculate the sales volume at which the variable and fixed costs needed to develop a product are recovered. It is the point at which a product starts to generate profits.

Expert Solution & Answer
Check Mark

Explanation of Solution

Ways how do break-even analysis aid managers to measure the potential impact of prices:

Break-even analysis and the concept of cost-oriented ricing are clubbed together to analyze the impact of the pricing objectives and the cost before deciding on the final price of a product. These tools will aid the managers in identifying the prices that will enable the firm to achieve their objectives. Break-even analysis primarily helps to quantify the sales volume at which the firm will cover the production costs and begin generating profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Can you guys help me on this? Thank you! Here's the authentic insight my classmate wrote about the article they chose. Please give a little comment on this insight that my classmate just wrote. Thank you!
Hi! Can you guys help me with this? Thank you! Here's the article by Mark Chediak & Jennifer A Dlouhy from Bloomberg called US Imposes Tariffs Up to 3,521% on Southeast Asia Solar Imports Please offer authentic insights on how this article connects with global supply chain management.
How an individual attending a university can help the development of a country?
Knowledge Booster
Background pattern image
Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Text book image
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Text book image
Foundations of Business (MindTap Course List)
Marketing
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Text book image
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning