ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sellers earn a fair return on their investment.
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By tying the price to cost, sellers simplify pricing.
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To compete with competitor
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At least it cover cost for business sustainability
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Preventing undercharge situation
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Detailed explanation-1: -The break-even analysis helps the company to decide the least number of sales required to make profits. With the margin of safety reports, the management can execute a high business decision. Monitors and controls cost: Companies’ profit margin can be affected by the fixed and variable cost.
Detailed explanation-2: -A breakeven point is used in multiple areas of business and finance. In accounting terms, it refers to the production level at which total production revenue equals total production costs. In investing, the breakeven point is the point at which the original cost equals the market price.
Detailed explanation-3: -Essentially breakeven is determined by two basic factors–anticipated revenue and projects costs of doing business. Revenue is largely affected by market demand. The more customers desire your products and services, the greater your sales volume and the sooner you can cover your business costs.