29 Gomez thinks the best way to lower the break-even point is to raise prices. Do you agree? Justify your answer. [6]
Posted: Tue Feb 17, 2026 7:46 pm
Gomez is the manager of a small computer repair business. The Table shows some costs and prices for his business. As it is a competitive market, Gomez knows it is important to maintain customer loyalty and revenue. Gomez knows that a lower break-even point would help improve profits. He thinks the best way to lower the break-even point is to raise prices.
29 Gomez thinks the best way to lower the break-even point is to raise prices. Do you agree? Justify your answer. [6]
Possible KN Points:
• raise in price will increase revenue
• effect of elasticity
• depends on actions of competitors
• is the business able to lower costs
• lower costs
- COST AND PRICE INFO.JPG (13.17 KiB) Viewed 295 times
Possible KN Points:
• raise in price will increase revenue
• effect of elasticity
• depends on actions of competitors
• is the business able to lower costs
• lower costs