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Such analysis permits the firm to determine at what level of operations it will break even (earn zero profit) and to discover the relationship among volume, costs, and profits. It helps the management that at present costs of products how many numbers of units must be sold to recover the cost of creating the product.
For Example: If you spend, $200 on creating a product and selling price is $20 then you must sale 10 units to recover the cost of product. It also helps the management to verify how much of units to be sold to get desired profit on product. For example: if in the above example you need to earn $20 profit then add it to its cost of $200 and it will become $220 now you require to earn profit of this $20 you require to sale 11 items of product.
Suppose the price level in year 2009 is 100 and $100 buys 100 notebooks that year. If the price level rises to 125 in year 2010, what is the new value or purchasing power of the do
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give and explain national income variation
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what is automatic stabilizer, example with diagram or graph please
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