Marketing managers are often asked to make recommendations for or against the program, which cost money to implement. Before expenses are made, managers want to be sure that they will get a return on their investment. One way to estimate this is to calculate the break-even point. In this paper, we introduce the concept of break-even analysis, and show how it is used to guide marketing decision making. This analysis helps students to assess the feasibility of the proposed fixed and variable marketing costs, the possibility of a permanent change in prices, and the ability to introduce new products. The note gives students a framework for analyzing marketing cases, as well as providing an analytical framework and processes to complete a marketing plan. The note by the free sheet Excel, which contains sample problems, embedded Excel models to calculate the break-even point, and charts and graphs to help you visualize the results. "Hide
by Thomas Steenburgh, Jill Avery 6 pages. Publication Date: February 04, 2010. Prod. #: 510080-PDF-ENG
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