One of the limitations associated with break-even analysis is that
A)it assumes fixed costs are zero.
B)it cannot adjust for high variable costs.
C)it tells marketers only what price is needed to break even.
D)it assumes that there is only one price.
E)it assumes that demand is extremely inelastic.

Question

Quizplus · Accepted Answer

Break-even analysis assumes that there is only one price at which the product or service is sold. This simplification overlooks the possibility of selling the product at various prices, which could significantly impact the break-even point and overall profitability.

One of the Limitations Associated with Break-Even Analysis Is That