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Break-Even Analysis
When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relationship to revenues is necessary. Understanding where the BEP is for a given product or service helps managers determine how to make modifications to increase profitability.
For this Assignment, review this week's Media, the Weekly Briefing, and the information given below.
LaTricia Jones is planning to make a unique toy that will keep small children entertained for hours! She believes that parents everywhere will want to buy her toy, and she needs to determine her costs and the number of toys she needs to sell before earning a profit.
After researching her costs, she has come to the following conclusions.
The Assignment:
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