EBK MINDTAPV2.0 CONTEMPORARY MARKETING,
17th Edition
ISBN: 9781337091022
Author: Kurtz
Publisher: VST
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Chapter 18, Problem 8ALR
Summary Introduction
To discuss: The advantages of changed break-even analysis over the basic breakeven formula.
Break-even point is where the firm earns no profit and no gains.
Break even analysis is used to determine the amount the product should be sold at a price to earn the sufficient revenue to cover the fixed and variable costs.
Formula to calculate the breakeven point:
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