PRINCIPLES OF MARKETING (Discussion week 7)

PRINCIPLES OF MARKETING (Discussion week 7)

Why is it important for managers to understand the concept of breakeven points? Are there any drawbacks to using break-even analysis? If so, explain. If not, explain.

Sources:

Lamb, C. W., Hair, J. F., McDaniel, C. (20180125). MKTG, 12th Edition

Solution Preview

Breakeven Points
The breakeven point is the point at which the total expenses in a business equate to the total expenses. It is especially important to managers since it presents the opportunity to determine the amount they would need to sell and acquire revenue, to meet the total expenses

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