An analysis of the relation between sales volume and various measures of proﬁtability is called:
A) Forecasting analysis.
B) Scenario analysis.
C) Sensitivity analysis.
D) Simulation analysis.
E) Break-even analysis.

Question

Quizplus · Accepted Answer

The analysis described in the question is commonly known as break-even analysis, which examines the point where revenue equals total costs and provides insight into the number of units that need to be sold in order to cover costs and make a profit. Therefore, the best choice is E, Break-even analysis.

An Analysis of the Relation Between Sales Volume and Various