If you did a breakeven analysis for your firm, it would be possible for you to show management the point at which ______.
A) the firm's fixed costs would climb sharply
B) the firm would not make a profit if it sold additional units
C) profits would be maximized
D) the level of sales that will cover all of the company's costs

Question

Quizplus · Accepted Answer

A breakeven analysis helps determine the level of sales at which a firm will cover all its costs, including both fixed and variable costs, and will not make a profit or loss. Therefore, the correct choice is D.

If You Did a Breakeven Analysis for Your Firm, It