Factors determinining a product’s profitability

1. A financial tool that is used to measure and evaluate the factors that determine the profitability of a product is known as the The breakeven Analysis . After determining the breakeven point for a company, there are many observations that can be made. Describe these observations and what they mean. 2. Why is it important to analyze the Return on Investment (ROI) and what should be analyzed? 3. Describe “payback” and “ROI hierarchy”? Discuss the Differences?

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