mkt402 week 8 discussion AND responses
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Week 8 Discussion 1COLLAPSEOverall Rating:12345Your Rating:12345″Breakeven Analysis” Please respond to the following:Provide a scenario in which a breakeven sales analysis for reactive pricing would be the best option for a company.AND RESPONSE TO BOTH POSTS:Jackson RE: Week 8 Discussion 1COLLAPSEOverall Rating:12345Your Rating:12345A break-even analysis is used to figure out how much product your business needs to sell to cover the costs of doing business. Break-even is the point at which a business’s total costs and total revenue are exactly equal. With a break-even analysis, you can figure out when your business will begin to make a profit. Every product you sell or service you offer has an associated cost the cost of materials or the cost of wages. In your accounting books, these costs show up as the cost of goods sold. The more you sell, the more your expenses will be. If you gross $1,000 in product sales in one month, that amount will not cover $1000 in monthly overhead expenses. Out of a $1,000 gross profit, a certain amount of that may be the wholesale price. When you deduct the wholesale price from $1,000 you may end up with only $500 in gross profit. The break-even point is when the revenue equals all business costs, wholesale and overhead includedAND THIS POST:Miller RE: Week 8 Discussion 1COLLAPSEOverall Rating:12345Your Rating:12345The break-even sales analysis lets you determine what you need to sell, monthly or annually, to cover your costs of doing business—your break-even point. The break-even analysis table calculates a break-even point based on fixed costs, variable costs per unit of sales, and revenue per unit of sales.Reactive pricing reacts to the past rather than anticipating the future. An example is when a consumer experiences an unforeseen circumstance. Personally, my car broke down last year. It was then that I noticed car sales ads. I specifically paid attention to adds that focused on car breakdowns. Reactive marketing uses real-time data that could happen due to customers unforeseen changes. My unforeseen change was my car suddenly breaking down. Reactive pricing pays close attention to the ever-changing needs of potential customers. I ended up dealing with a car company that seemed to have created their ads just for me.https://articles.bplans.com/break-even-analysis/
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