--%>
Assignment Help - homework help

Uses for break-even analysis

Explain what are the several uses for break-even analysis?

E

Expert

Verified

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.

   Related Questions in Microeconomics

  • Q : Price elasticity of demand Elucidate

    Elucidate any four factors which affect the price elasticity of demand.

    		•
  • Q : Profit Maximization problem Can someone

    Can someone help me in finding out the right answer from the given options. The Firms adjust their inputs of the labor or other resources till: (1) Revenue is maximized. (2) Employment is maximized. (3) Marginal product of the labor is maximized. (4) Gain is maximized

    		•
  • Q : LEAST dependency Demands for labor

    Demands for labor depend LEAST upon the levels of: (w) labor productivity. (x) technology as well as amounts of other resources employed. (y) demand for final products. (z) trade off among work (creating income) and leisure.

    Q : Individual Welfare Recipients If an

    If an individual receives benefits from the government, associate to the benefits everyone else receives, which exceed the individual’s taxes like a proportion of total tax payments by all citizens, which individual can reasonably be viewed like

    		•
  • Q : What makes goods or resources valuable

    Can someone help me in finding out the precise answer from the given options. Modifying the goods or resources in manners that make them more valuable is: (1) Production. (2) Profitability. (3) Consumption. (4) Distribution.

    		•
  • Q : Capital resources Select which of the

    Select which of the following lists includes only capital resources (and therefore no labor or land resources)? 1) an ice arena; a professional hockey player; hockey uniforms. 2) the owner of a new startup firm; a chemistry lab; a researcher. 3) a hydroelectric dam; w

    		•
  • Q : Reason of Financial Intermediation The

    The fundamental reason for financial intermediary’s presence is to: (1) Facilitate beginning new business firms by employing internal financing. (2) Help business organizations comply with laws needing the financial intermediation. (3) Minimize

    		•
  • Q : Multinational corporations Give the

    Give the answer of following question. Multinational corporations: A) mainly are headquartered in Switzerland. B) are so named because of their heavy export volume. C) are illegal under the U.S. antitrust laws. D) are so named because of their sizable foreign producti

    		•
  • Q : Define Oligopoly and its characteristics

    Explain the term Oligopoly? Also explain its Characteristics?

    		•
  • Q : Determine profit maximizing price The

    The profit-maximizing price for copyrighted smash-hit St. Valentine’s Day software of Prohibition Corporation is: (i) $12 per copy. (ii) $20 per copy. (iii) $24 per copy. (iv) $32 per copy. (v) $40 per copy. <

    		•