3-1 bail

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 Break Even Point AnalysisCOLLAPSE

Initially I would say yes I agree with these statements. Ultimately we have learned the calculation that raising the price of product will lower the break even point. With a lower break point, loss is less likely to occur. This is because with less break even point comes less profit activity, which would lead to the less likelihood of loss. Although these statements are easily agreeable at first, with deeper thought I would say no, a management accountant would not agree with these statements. These statements are not as simple as they sound and they don't come down to simple mathematic equations. Raising the prices of a product, without increasing the quality of the product could potentially have drastic effects on a business. First, there could be a decrease in demand of the products and products sold because the prices have been raised. If a regular customer comes in to see a much higher price for a product that they have been purchasing for a long time, they might be influenced to look for the product elsewhere or not at all. If the product decreases in demand, and can't reach the break even point at all then they could end up loosing. 

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