factors which can change the break even point what cost are change
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Increase in production costs
The hard part of running a business is when customer sales or product demand remains the same while the price of variable costs increases, such as the price of raw materials. When that happens, the BEP also goes up because of the additional expense.
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Essentially breakeven is determined by two basic factors -- anticipated revenue and projects costs of doing business. Revenue is largely affected by market demand. The more customers desire your products and services, the greater your sales volume and the sooner you can cover your business costs.
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