Break-even analysis is useful because it allows managers to
A)quantify the relationship between price elasticity and product elasticity.
B)reposition products based on their break-even positioning revenue.
C)estimate the quantity they will need to sell at a given price to break even.
D)determine the relationship between price and quantity demanded.
E)analyze the different elements contributing to their variable costs.

Question

Quizplus · Accepted Answer

Break-even analysis helps managers estimate the quantity they need to sell at a given price to break even, which is important information for pricing decisions and determining sales goals. While it may indirectly relate to price elasticity and product positioning, its primary purpose is to calculate the break-even point. It also does not directly determine the relationship between price and quantity demanded or analyze variable costs, although these factors may be taken into account when performing a break-even analysis.

Break-Even Analysis Is Useful Because It Allows Managers to