A break-even analysis is used to determine how many units must be sold at a given price before the company begins to make a profit.

Question

Quizplus · Accepted Answer

This is correct. The break-even analysis is a calculation of the point at which the company's total revenue equals total cost, resulting in zero profit or loss. By determining the number of units needed to be sold at a given price, the company can determine if their pricing strategy is viable for profitability.

A Break-Even Analysis Is Used to Determine How Many Units