Asked by
Makayla Bryant
on Nov 20, 2024
Verified
One of the limitations associated with break-even analysis is that
A) it assumes fixed costs are zero.
B) it cannot adjust for high variable costs.
C) it tells marketers only what price is needed to break even.
D) it assumes that there is only one price.
E) it assumes that demand is extremely inelastic.
Break-Even Analysis
Technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point.
Variable Costs
Expenses that change in proportion to the activity or volume of a business.
- Comprehend the fundamentals of break-even analysis and its utilization in making business decisions.
Verified Answer
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Learning Objectives
- Comprehend the fundamentals of break-even analysis and its utilization in making business decisions.
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