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Break-Even Point and Total Sales/Revenue are Equal - Assignment Example

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The reporter underlines that break-even point is defined as the point at which total costs/expenses and total sales/revenue are equal. At this point, a business has not made any profit or loss but it has paid for all the costs incurred in the production process…
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Break-Even Point and Total Sales/Revenue are Equal
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Download file to see previous pages It also provides a rough estimate of the impact that marketing activities have on any activity in the business. To calculate the breakeven point per month for instance we will need the following: total fixed costs (TFC) per month, selling price (SP) per unit, and total variable costs (TVC) per unit. In this case, we have TFC as $176,741.67, TVC as $ 0.46, but we do not have SP.
Before we answer the question on how marketing improves the standard of living, we need understand the meaning of the phrase standard of living. Standard of living is basically a standard that measures the availability, accessibility, and affordability of human needs such as food, clothing, shelter, education, healthcare, and so on. When we claim that marketing improves the standard of living, we, therefore, have to show how marketing contributes to the availability, accessibility, and affordability of these needs. It also means that marketing is responsible for our lives. Empirical studies conducted globally have shown that there is a positive correlation between a country’s standard of living and its macro-marketing system (Lamb, Joseph, and Carl 122)
Marketing improves the standard of living by promoting large-scale production and sales, which lower the cost of production thereby higher profits. Here it meets the condition for promoting the availability of goods. Increased profits could lead to higher incomes for workers, which has a direct impact on the affordability of human needs. It also leads to lower commodity prices, which translate to increased consumption of these commodities by a large number of consumers thereby increasing accessibility, availability, and affordability.
For instance, company XYZ manufactures a detergent for removing stains on clothes. Without marketing efforts, XYZ will attract only a handful of customers. This will mean that they will operate below optimum with high fixed costs and therefore they will sell their detergent at a relatively high price. ...Download file to see next pages Read More
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