is the process used to determine the profitability of a product at various levels of sales.

Question

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Break-even analysis is specifically designed to determine the point at which a product or service's revenue covers its total costs. This is the point where a company is neither making a profit nor incurring a loss. By analyzing the fixed and variable costs associated with producing and selling a product, companies can determine how many items they'll need to sell to break even--and how many more they'll need to sell to generate a profit.

Is the Process Used to Determine the Profitability of a Product