The concept of break even analysis and target income for Northrop Grumman
Good evening in two full in pages in length: single; 12 pt. font. One Inch margins. Any small charts will count for space. Goal:tell the story of Northrop Grumman in the parameters described below.
Consider the concept of break even analysis and target income.How do these analytical tools relate to product pricing and cost management?
Why would a company seek to position themselves as low price or high price item in the market place?How might this affect sales dollars, sales volume, and profits?
Search and review your course materials for pricing strategies.Search specifically for the word pricing.Explain the interrelationships with accounting, information systems, and sales, marketing, and profit planning. include the SEC 10K reference
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Break Even Analysis (BEP) is used in relating fixed costs, variable costs, and revenue. The analysis establishes a breakeven point which is used in indicating when a business starts generating returns. The analysis involves a simple mathematical calculation. Target income is the budgeted level of profit. A business breaks even when sales and costs charged are equal at a certain point. This means that during this period of break even, the business does not have net loss or income.
The Break Even Point is expressed in either dollar of the sales or number of units sold or produced (Mulder, 2017).
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