MANAGEMENT

Detailed explanation-1: -What is ‘Break-even Pricing’ Definition: Break-even pricing is an accounting pricing methodology in which the price point at which a product will earn zero profit is calculated. In other words, it is the point at which cost is equal to revenue.

Detailed explanation-2: -Break-even analysis is a small-business accounting process for determining at what point a company, or a new product or service, will be profitable. It’s a financial calculation used to determine the number of products or services you must sell to at least cover your production costs.

Detailed explanation-3: -Cost-based pricing is a pricing method that is based on the cost of production, manufacturing, and distribution of a product. Essentially, the price of a product is determined by adding a percentage of the manufacturing costs to the selling price to make a profit.

Detailed explanation-4: -The cost-based pricing strategy involves setting the price of a product or service based on the cost. Then, add a margin to obtain the selling price. For example, it costs $2, 000 to make a computer. Then, the manufacturer decides to add 30% of the cost to get the selling price.