ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Break-even analysis does not tell you what price you should charge for a product, but it gives you an idea of the number of units you must sell at various prices to make a profit.
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True
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False
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Either A or B
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None of the above
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Explanation:
Detailed explanation-1: -A break-even analysis is an economic tool that is used to determine the cost structure of a company or the number of units that need to be sold to cover the cost.
Detailed explanation-2: -To calculate a break-even point based on units: Divide fixed costs by the revenue per unit minus the variable cost per unit. The fixed costs are those that do not change no matter how many units are sold. The revenue is the price for which you’re selling the product minus the variable costs, like labour and materials.
There is 1 question to complete.