Participation Exercise #5 Assignment Example | Topics and Well Written Essays - 250 words

Participation Exercise 5 - Assignment ExampleCalculation of a breakeven also aids the business owner in learning the opposite costs both fixed and variable to easily determine the frequently they need as capital and that aside to propel the business to profitability. These provide the advantages of sharp the breakeven point before starting a business. The point that aids the business owners realizes the returns from their efforts. The point that defines their real profits the business earns (Rodriguez).During the calculations if the resulting breakeven point indicates a performance at a lower place the needed breakeven point, a number of options may aid improve the position. The addition in the selling prices may allow the company to improve the position and increase in volumes of sales provides another option. The circumstances surrounding the business environment determine the action to take with the option to increase the selling price much determined by the competitors price s among other factors. An increase in volumes sold will provide a more viable option to meliorate the position on the breakeven point.Rodriguez, George. Is Your Business successful? 3 Indicators of Success. Powerhomebiz. Viewed on May 1, 2015 from