Companies use ________ to determine the quantity of a product that must be sold before the seller makes a profit.
A) marginal analysis
B) markup pricing
C) penetration pricing
D) breakeven analysis

Question

Quizplus · Accepted Answer

Breakeven analysis is a financial tool that helps companies determine the point at which the total revenue generated from the sale of a product equals the total cost of producing that product. Once a company knows its breakeven point, it can calculate the quantity of a product that must be sold before the company begins to make a profit. This information is important for making pricing decisions and setting sales targets. Marginal analysis is a technique used to assess how a company's costs and revenues will change if it produces one more unit of a product, while markup and penetration pricing are pricing strategies used to set the initial price of a product.

Companies Use ________ to Determine the Quantity of a Product