A company has lower sales volume than expected and is operating at a loss. What can...

A company has lower sales volume than expected and is operating at a loss. What can the company do to reach the breakeven point given a set volume of sales possible?

Expert Solution

If a company has lower sales than it expected there is lot of ways and strategies to increase the sales volume.

Here in this case the company has lower sales volume than it expected and is operating at loss. To get the break-even point the company need to increase the sales volume and that can be done by various ways:

1) The company can check the market report and if they find that their cost of product is influencing sales volume then if it is possible to reduce it sales price then company should reduce its sales price.

2) If they find that their sales is less because of unable to reach at customer then company should spent some money on advertising and try to reach at all targeted customer.

3) If company cannot decrease it sales price then company should give some extra product at same price level to attract the customers,

4) If company only wants to earn their break-even sales then company can also try to reduce it Variable cost as well as Fixed cost that they can reach at their break-even point

There can be some other ways to increase the sales volume but it exactly can find out only by reviewing the company current sales procedure,

I hope this clear your doubt.

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jeff jeffy answered 7 months ago

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