The question is about the company from both Online and Retail Shop from brick and mortar...
The question is about the company from both Online and Retail Shop from brick and mortar retailers which both of them have different fixed and variable cost. Given the fact about the differences, it is true that both of them start off with the same break-even point? Both of them have similar Cost Volume Profit Analysis.
Online vs brick and mortar retailers companies will have both starts off with the same break-even point?
Homework Answers
Break-even point is that point of sales where company generates enough contribution to cover the fixed cost. If both Online and Retail shop from brick and mortar retails have differend fixed and variable cost then the breakeven point of both the section will also be different.
If the Cost volume profit analysis is similar for both of them then it will have the same breakeven point too because it will create the same PV ratio and cost which is required to calculate the break even point
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The question is about the company from both Online and Retail
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