When the Price of Fabric Falls,it Does Not Benefit a Clothing

question 68

True/False

When the price of fabric falls,it does not benefit a clothing manufacturer to lower its prices since that will only reduce its profit margin.

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Definitions:

Breaking Even

Refers to the point at which total revenues equal total costs or expenses, resulting in no profit or loss for a business.

Selling Price

The amount for which a product is sold to the customer, determining the revenue generated from sales.

Financial Advantage

The benefit gained in financial terms, often through investment decisions, operational improvements, or strategic actions.

Calculators

Electronic devices or software applications used for making mathematical calculations, ranging from basic arithmetic to complex computations.