Break Even Analysis

Consider the concept of break even analysis and target income. What is your understanding of Break Even Analysis and Target Income. Use your own words. How do these analytical tools relate to product pricing and cost management? Provide specific hypothetical, numerical examples of how Break- Even Analysis can impact pricing of any companys products. Use the text and or the video lecture prepared by Prof Lazarus and me for additional guidance.

Pricing

Why would a company seek to position themselves as low price or high price item in the market place? How might this affect sales dollars, sales volume, and profits?

Search and review your course materials for pricing strategies. Search specifically for the word pricing. Summarize the concepts and issues from the course materials.

Interrelationships

Explain the interrelationships with accounting, information systems, and sales, marketing, and profit planning. For example, how do they impact each other? How is information from one area used in another area? These are just some questions for consideration, but your response should not be limited to these questions only.