Miranda is a marketing manager for a large manufacturer. Her boss has asked her to evaluate a new-product idea. One of the things Miranda wants to determine is how much of this product her firm would have to sell in order to break even. In order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

Question

Quizplus · Accepted Answer

To compute the break-even level of sales, the price of the good, total fixed costs, and variable cost of producing each unit are necessary. Therefore, Miranda does need to know these factors to determine the break-even point.

Miranda Is a Marketing Manager for a Large Manufacturer