After identifying a gap in the soft drinks market, jerome developed a low sugar drink. he borrowed $5000 from family and friends to start up a business and to provide working capital. jerome operates as a sole trader. to promote his product, jerome handed out free samples in town centre. in the first year, jerome's business sold 10000 units. this is 200 units more than his break even output. jerome is considering ways to increase added value. outline two ways that break even information can help jerome's business?

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19-09-2022
Business

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After identifying a gap in the soft drinks market, jerome developed a low sugar drink. he borrowed $5000 from family and friends to start up a business and to provide working capital. jerome operates as a sole trader. to promote his product, jerome handed out free samples in town centre. in the first year, jerome's business sold 10000 units. this is 200 units more than his break even output. jerome is considering ways to increase added value. outline two ways that break even information can help jerome's business?

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qwteddy qwteddy · Answer 1 · 2022-09-22T06:57:04-04:00

Jerome can determine the quantity of revenue or the number of things required for the business to break even by using break-even analysis.

Jerome can employ break-even analysis because it will help him enhance added value while preventing costs from changing dramatically.

The break-even point is the moment at which total revenue and total cost are equal. A break-even analysis determines how much revenue or how many units are needed to cover all of your business's expenses. At break-even, you won't be making any money or losing any, but all of your company's expenses will have been covered.

A financial tool called a break-even analysis can be used to determine when your company, service, or product will start to turn a profit. It is a mathematical formula used to determine how many products or services must be sold by a company in order to pay expenses, particularly fixed expenses.

Learn more about break-even analysis here:

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