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How can break-even be used as a price setting model for the organization? How might it be helpful?

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Solution Summary

Pricing your product or service is a focal topic.

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Pricing your product or service is one of the most important business decisions you make. There are many approaches, some scientific, some not.

Think of cost as the floor -- you must set prices above the floor to cover costs or you will quickly go out of business. If you decide to set prices below cost it should be for a specific purpose, such as to gain market entrance. Think of customer ...

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