Strategic Analysis of Enterprise Price Based on Balance Principle of Profit and Loss

The balance analysis of profit and loss is one of the important methods to determine the investment risk of a project and it is also a method for enterprises to make a break-even analysis. When uncertain factors change unfavorably, the balance analysis of profit and loss can help an enterprise judge whether it is in profit state or in money-losing state. On condition that the volume of production and marketing is identical, if an enterprise is in balanced state of profit and loss, the cost of its unit product will be exactly the profit and loss price of the enterprise. This paper is in an attempt to make an analysis on the price strategy in the management of enterprises by using the method mentioned above. To make it clear, this paper takes Galanz Microwave Oven as an example to make an empirical analysis.