Explore BrainMass

Explore BrainMass

    Identify and explain the BE (break-even point)

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    This assignment will continue the work you started on your new product. My product I am going to sell: Personal (portable) Mini Rechargeable Fan - use in summary time. Price $10.00/each.
    Identify and explain the BE (break-even point).
    Using a spreadsheet software program, create a chart showing the costs of your product, at least three different price points you might consider selling the product.
    In a separate area on the spreadsheet, explain the chart and the price points (use your own words).
    Select your BE point and explain why you selected that specific BE point.
    (Explanation should be a minimum of 500 words, spelling and grammar count. Use Times New Roman 12 point font, double spaced. Note: even though you are writing within the spreadsheet use APA style.)
    In your explanation, be sure to consider the cost of:
    o raw materials
    o labor
    o fixed costs
    o delivery
    o advertising
    You may need to be creative as you come up with pricing (this is ok).

    © BrainMass Inc. brainmass.com June 4, 2020, 5:15 am ad1c9bdddf

    Solution Preview

    The response addresses the query is posted in 597 words with APA References.

    //The break-even point analysis is very crucial for a company in order to choose the activity level. In this context, in the following section, the discussion has been taken up on the issue of selection of break-even point for the personal (portable) mini rechargeable fan. The discussion covers all the aspects concerning the break-even analysis.//

    The break-even point is a point, where the total cost of producing the product equals the total revenues of that product. In other words, at the break-even point, the company recovers all it costs incurred in manufacturing the product and after that point, the company starts earning profits. The break-even point can be said to be a study of the relationship between expenses and revenues. The behavior of expenses needs to be studied so as to know, which expenses change ...

    Solution Summary

    The expert identifies and explains the break-even point. The response addresses the query is posted in 597 words with APA References.