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 only tells marketers what price is needed to break even.
D) it assumes that there is only one price.
E) it assumes that demand is extremely inelastic.

Question

Quizplus · Accepted Answer

Break-even analysis assumes a single price point for calculations, which can be a limitation as it doesn't account for variations in pricing strategies or changes in market conditions.

One of the Limitations Associated with Break-Even Analysis Is That