What are the various uses for break-even analysis, Macroeconomics

Such analysis permits the firm to determine at what level of operations it will break even (earn zero profit) and to discover the relationship among volume, costs, and profits. It helps the management that at present costs of products how many numbers of units must be sold to recover the cost of creating the product.


For Example: If you spend, $200 on creating a product and selling price is $20 then you must sale 10 units to recover the cost of product.

It also helps the management to verify how much of units to be sold to get desired profit on product. For example: if in the above example you need to earn $20 profit then add it to its cost of $200 and it will become $220 now you require to earn profit of this $20 you require to sale 11 items of product.

 

Posted Date: 4/1/2013 2:51:02 AM | Location : United States







Related Discussions:- What are the various uses for break-even analysis, Assignment Help, Ask Question on What are the various uses for break-even analysis, Get Answer, Expert's Help, What are the various uses for break-even analysis Discussions

Write discussion on What are the various uses for break-even analysis
Your posts are moderated
Related Questions
What is the emerging market economy According to Investopedia, Antoine W. Van Agtmael of International Finance Corporation of the World Bank first mentioned the term emerging m

An ecologist has been reading the literature on the subject of factors affecting growth and metamorphosis of tadpoles in ponds. Some frog species (e.g. Hyla gratiosa) reproduce in

Determine the GDP price index for 1984, using 2005 as the base year

developing countries benefit through international trade from developed countries

How will each of the following bases for hospital reimbursement affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of se


Q. Determine the Exchange rate? Exchange rate is determined by the ratio of domestic price level to the foreign price level. If, for instance domestic prices increase by 10% wh

Q. Describe Endogenous growth theory? Endogenous growth theory or new growth theory was developed in the 1980s by Paul Romer and others. In neo-classical model, technological p

Question 1: Discuss why living standards are higher in some countries than others. Question 2: (a) How is inflation measured? (b) What are the causes and consequence

Assume in country-A Central Bank cares only about keeping the price level stable & in country-B, its central bank cares only about keeping output & employment at their natural rate