Assignment8 SBM - TESC October 2011 MAN432-GS009 Small...

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TESC, October 2011 MAN432-GS009 Small Business Management Assignment 8 1. If a business’ break-even analysis reveals the break-even volume to be 10,000 units at price of $10, should it price its products at $10? Why or why not? No, they should not price their items at $10 per unit. The reason behind this is that there are large factors in this for example industry, product, demand, cost, and expenses. Being that this is just a general question, I would still answer no. My reason remains the same. The company will start to earn profit sooner, while raising the price will lower the number of units that need-be-sold. At the rate at which selling the 10,000 units would have taken the company will be enjoying profitable returns. 2. In addition to a small business owner’s own cost and revenue analyses, what external factors should an entrepreneur consider when choosing a pricing strategy? Explain why for each factor. Demand, markup pricing, and the economy, are the external forces that should be
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Assignment8 SBM - TESC October 2011 MAN432-GS009 Small...

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