Describe what is meant by the term break-even analysis

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Marketers consider several factors when making the product pricing decision.

In about one paragraph, describe what’s meant by the term “break-even analysis” and why such analysis is used by marketers. Imagine that you own a small art gallery and want to determine the number of artworks you must sell in order to break even.

The average price for each piece is $150. Your fixed costs are $27,500 per year and your unit variable cost is $40. Please respond to each of the below questions and show your work. What quantity must you sell to break even. At the break-even point, what is your profit? What would your profit be if you sold 10 units more than the break-even quantity?

Reference no: EM132189111

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