What is break-even analysis? How is it useful to the manager?
For a particular product, the following information is given:
Selling price per unit : Rs. 100
Variable cost per unit : Rs. 60
Fixed costs : Rs. 10,00,000
Due to inflation the variable costs have increased by 10% while fixed costs have increased by 5%. If the break-even quantity is to remain constant by what percentage should the Sales price be raised?