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
If a government finances an increase in its expenditures by selling bonds to the public, then the aggregate demand curve will: A. not shift. B. shift out more if crowding out occur

Suppose a company is considering two investment projects. Both projects require an upfront expenditure of $30 million. The company estimates that the cost of capital is 10% and tha

Derive the conditions for steady state in the Solow model. What are its implications? In what respects is the golden rule different from the steady state?

In reference to the above question, assume you know the combination of inputs that minimizes cost. What would happen to this input combination if the price of labor increased? What

trying to figure out how this works as I have two classes currently statistics/economics an

impact of change in government expenditure and tax on fiscal policy

Why do some countries have a low real per capita income? Low real per capita income considers being largely due low productivity (i.e., output per worker) of low valued added

What are the general principles about marginal and average total cost curves? General principles which are always true concerning a firm’s marginal and average total cost curve

Suppose that Ana is buying only 2 goods: good 1 and 2. If the price of good 1 doubles and the price of good 2 drops by one third, then what happens with the budget constraint? (Ass

In order to observe the correlations between each variable, the most effective method to use is Vector Autoregression (VAR). VAR estimation uses a system of simultaneous equations