The main difference between profit maximization analysis and breakeven analysis is that breakeven analysis holds price and average variable cost constant, while profit maximization analysis does not.

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Breakeven analysis focuses on determining the level of sales needed to cover all costs and achieve a zero profit. In this analysis, the price and average variable cost are held constant. On the other hand, profit maximization analysis aims to find the optimal price and output level that would maximize the profit. It allows for changes in price and average variable cost which would affect the profit level.

The Main Difference Between Profit Maximization Analysis and Breakeven Analysis