Calculate the break-even point for a new toy that costs $12 to make and market and that will be sold for $15. The total quantity that will be sold at that price is 200,000.
Calculate the break-even point for a new toy that costs $12 to make and market and that will be sold for $15. The total quantity that will be sold at that price is 200,000.
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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The break-even analysis shows how much sales it takes for paying for the cost of doing business. If revenues are being less than total cost, a company does not reach the break-even point, which in turn results in a loss.
A company that fails for making enough sales in order to meet the break-even point accumulates debt over time. This could eventually cause a company to go out of business.
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