Uses for break-even analysis
Explain what are the several uses for break-even analysis?
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These type of analysis allows the firm to define at what level of operations it will break even (earn zero profit) and to discover the relationship between costs, profits and volume. It provide helps to the management at current costs of products so many numbers of units must be sold to get the cost of producing the product.
For Example: On producing a product if you spend $200 and its selling price is $20 then to recover the cost of product you must sale 10 units.
It helps the management to determine how much of units to be sold to get desired profit on product such as: if in the above example you want to earn $20 profit then add it to it's cost of $200 and it will become $220 now you need to earn profit of this $20 you need to sale 11 items of product.
Price cross-elasticity of demand measures the virtual responsiveness of the quantity sold of a specified good to a change in the: (w) price of which good. (x) individual's income. (y) sales of another good. (z) price of another good. Q : Absolute value of demand slope Since Since the price drop/falls and quantity demanded rises all along this demand curve for pizza, the absolute value of slope will be: (1) Is constant and elasticity falls. (2) Elasticity are constant. (3) Drop/falls and elasticity is constant. (4) Elasti
Since the price drop/falls and quantity demanded rises all along this demand curve for pizza, the absolute value of slope will be: (1) Is constant and elasticity falls. (2) Elasticity are constant. (3) Drop/falls and elasticity is constant. (4) Elasti
A family whose income leaves this hovering at the brink of survival and that gives only a razor’s edge existence is experiencing: (w) relative poverty. (x) economic shock. (y) financial destitution. (z) absolute poverty. Q : Problem onto public sector The word “ The word “public sector” signifies to: (1) Stockholders and households. (2) Investors and Consumers. (3) Households and investors. (4) Democratic voting systems. (5) All actions of government. Hey frien
The word “public sector” signifies to: (1) Stockholders and households. (2) Investors and Consumers. (3) Households and investors. (4) Democratic voting systems. (5) All actions of government. Hey frien
Taxes will be shifted forward completely when supply is positively sloped as well as the demand curve is, there contrary to economic reasoning: (1) perfectly inelastic. (2) perfectly elastic. (3) unitarily elastic. (4) flatter than supply.
When cost conditions are otherwise identical, compared to the outcome of a purely competitive market, in that case a monopolist: (w) produces less and charges more. (x) maximizes total profits whenever possible. (y) confronts a demand curve where P =
When an oligopolistic firm increases its price, in that case the demand this faces will be: (1) more elastic if the other firms in the industry raise their prices. (2) less elastic when no other firms in the industry raise their prices. (3) more elast
Monsieur Cournot has a monopoly on an artesian well from that flows tasty spring water along with medicinal properties. To ignore variable costs, he insists which customers bring their own pails as well as fill them individually. Cour
St. Valentine’s Day software is currently going in version of 6.0. At this point on the demand curve where the price elasticity of demand is unitary, there the price would be approximately: (i) $20, resulting in roughly 16 milli
Economists frequently refer to “the price” as while each good has only one price. Conversely, prices frequently vary greatly, depending upon where you are, due to: (w) advertising. (x) transaction costs. (y) marketing overhead. (z) poor co
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