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Breakeven Analysis
book

Breakeven Analysis

by Michael E. Cafferky, Jon Wentworth
August 2014
Intermediate to advanced content levelIntermediate to advanced
172 pages
3h 14m
English
Business Expert Press
Content preview from Breakeven Analysis

CHAPTER 6

Modified Breakeven Analysis

Factoring Estimates of Demand

We know selling price plays an important part in determining the breakeven point. With everything else unchanged, the lower the price, the higher the breakeven point and vice versa. Cost is an important factor that influences price. In fact, we can say that price is never completely separated from cost considerations. With everything else unchanged, the higher the costs the more managers will be inclined to raise the price and vice versa. Price in its relationship to cost is important, but it is not the only factor to consider.

For most products and services offered in competitive markets, managers must take into consideration the competition and how customer behaviors might ...

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Publisher Resources

ISBN: 9781631570919