Which of the following statements about a break-even analysis is true?
A)A break-even analysis is used to determine how the customer-perceived value changes with value-added pricing.
B)A break-even analysis is a tool used to calculate fixed costs.
C)A break-even analysis shows the level of earnings a company has during an accounting period.
D)A break-even analysis is a tool marketers use to examine the relationship between supply and demand.
E)A break-even analysis does not consider customer value and the relationship between price and demand.

Question

Quizplus · Accepted Answer

A break-even analysis only considers the fixed and variable costs of producing and selling a product or service and at what point those costs are covered by revenue. It does not take into account the customer's perceived value or the relationship between price and demand.

Which of the Following Statements About a Break-Even Analysis Is