If a small business conducts a break-even analysis properly and finds the break-even volume at a price

Question:

If a small business conducts a break-even analysis properly and finds the break-even volume at a price of $10 to be 10,000 units, should it price its product at $10? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Small Business Management Launching & Growing Entrepreneurial Ventures

ISBN: 978-1133947752

17th edition

Authors: Justin Longenecker, William Petty, Leslie Palich, Frank Hoy

See More Books

Question Posted: Jan 14, 2015 09:33 AM

See More Questions

The Wax Works sells 400 candles at a price of $10 per candle. The Wax Works' total costs for producing 400 candles are $500. The Wax Works' economic profit is A.$4,500. B.indeterminate from this...
What strategies should be considered if a small business is setting prices for a product that is to be exported? How do these strategies differ from those used in a domestic market?
If a small business break-even analysis reveals the break-even volume to be 10,000 units at a price of $10, should it price its product at $10? Support your answer.
Paul Anchor, Incorporated estimated that bad debt expense would equal 4% of the ending balance of accounts receivable for the current year. This years ending balance of accounts receivable amounted...
Complete and balance the following equations. Write NR if no reaction occurs. a. I2(aq) + Cl(aq) b. Cl2(aq) + Br(aq) c. Br2(aq) + I(aq) d. Br2(aq) + Cl(aq)
Wilcox Mills is a manufacturer that makes all sales on 30-day credit terms. Annual sales are approximately $30 million. At the end of 2010, accounts receivable were presented in the companys balance...
Amy commutes to work by two different routes A and B. If she comes home by route A, then she will be home no later than 6 P.M. with probability 0.8, but if she comes home by route B, then she will be...
After the tangible assets have been adjusted to current market prices, the capital accounts of Brandon Newman and Latrell Osbourne have balances of $75,000 and $125,000, respectively. Juan Rivas is...
The Sanders Company issued 9.5% bonds, dated January 1, with a face amount of $8,000,000 on January 1, 2024. The bonds mature on December 31, 2033 (10 years). For bonds of similar risk and maturity,...
Rising Stars Academy provided the following information on its 2019 balance sheet and statement of cash flows: Required: 1. Calculate the following ratios for Rising Stars: (a) Debt to equity, (b)...
What are the four key questions in evaluating a credit application?
1. Are Balogh and Dawson offering too many services? What do you advise? 2. Are Balogh and Dawson offering too low a price? What do you advise? 3. If the owners raise their prices, how do you think...
Use the graphs of f, f', and f" to estimate the x-coordinates of the maximum and minimum points and inflection points of f. f(x) = cosx x + x + 1 2 -Tx T
Suppose a router has three input flows and one output. It receives the packets listed in Table 6.1 all at about the same time, in the order listed, during a period in which the output port is busy...
MPLS has sometimes been claimed to improve router performance. Explain why this might be true, and suggest reasons why in practice this may not be the case.
Suppose most of the Internet used some form of geographical addressing but that a large international organization has a single IP network address and routes its internal traffic over its own links....
Why do you think IPv4 has fragment reassembly done at the endpoint rather than at the next router? Why do you think IPv6 abandoned fragmentation entirely? Hint: Think about the differences between...
Suppose that when a TCP segment is sent more than once, we take SampleRTT to be the time between the original transmission and the ACK, as in Figure 5.10(a). Show that if a connection with a...
The average barometric pressure at an altitude of 10 km is 210 mm Hg. Express this pressure in atmospheres, bars, and kilopascals.
What is the difference between direct materials and indirect materials?
The illumination lights in an operating room use a concave mirror to focus an image of a bright lamp onto the surgical site. One such light has a mirror with a focal length of $15.0 \mathrm{~cm}$....
Which features of organizations do managers need to know about to build and use information systems successfully? What is the impact of information systems on organizations? 1. Define an organization...
How does Porters competitive forces model help companies develop competitive strategies using information systems? 1. Define Porters competitive forces model and explain how it works. 2. Describe...
How do the value chain and value web models help businesses identify opportunities for strategic information system applications? 1. Define and describe the value chain model. 2. Explain how the...
Select an innovative business idea like smart bag . Then, design a plan for starting the business. You are required to prepare a TYPED report on the plan for setting up your business which includes:...
Name and explain 2 advantages of having a liquidated damages clause in the contract.
Methodology This study adopted a positivistic research paradigm and implemented a quantitative research approach which was deductive and cross-sectional in nature. A survey with self-administered and...

If a small business conducts a break-even analysis properly and finds the break-even volume at a price

Question:

Step by Step Answer:

Probably say Yes if the business can produce more than 10000 units This is c...View the full answer

Small Business Management Launching & Growing Entrepreneurial Ventures

Students also viewed these Management Leadership questions