One implication of cost-volume-profit analysis is that companies with lower fixed costs have lower break-even points.

Question

Quizplus · Accepted Answer

Cost-volume-profit analysis shows the relationship between a company's fixed costs, variable costs, selling price, and sales volume. The break-even point is the point at which total revenue equals total costs (fixed costs plus variable costs). The lower the fixed costs, the lower the break-even point, as the company does not need to sell as much in order to cover its fixed costs.

One Implication of Cost-Volume-Profit Analysis Is That Companies with Lower