GK
MARKETING MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sherman Act
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Stamp Act
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Break-Even Analysis
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Budget
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Detailed explanation-1: -Select a range of sale prices and compute the contribution margin for each price. Next, divide total fixed cost by each contribution margin to compute the breakeven sales quantity. Notice that the higher the price, the smaller the quantity you will need to sell to break even.
Detailed explanation-2: -The following formula can be used to estimate a firm’s break-even point: Fixed costs / (price-variable costs) = break-even point in units.
Detailed explanation-3: -Cost-volume-profit (CVP) analysis is a way to find out how changes in variable and fixed costs affect a firm’s profit. Companies can use CVP to see how many units they need to sell to break even (cover all costs) or reach a certain minimum profit margin.