The method of determining the minimum sales volume needed at a certain price level to cover all costs is ______.
A) market share analysis
B) equilibrium pricing
C) return on sales
D) breakeven analysis

Question

Quizplus · Accepted Answer

Breakeven analysis involves calculating the point at which total revenue equals total costs, resulting in neither a profit nor a loss. This point can help determine the minimum sales volume needed to cover all costs at a certain price level. Market share analysis involves examining a company's portion of the market compared to competitors, and is not directly related to determining sales volume needed to cover costs. Equilibrium pricing involves finding the price at which supply and demand are equal, and is not directly related to determining sales volume needed to cover costs. Return on sales measures the profit generated from sales, and does not necessarily take into account all costs.

The Method of Determining the Minimum Sales Volume Needed at a Certain