The Director of HIMS has calculated the break-even point for purchase of a new transcription system to be four years. Is this analysis correct?

Question

Quizplus · Accepted Answer

The correct analysis of break-even point should take into account the time required for the new system to recover its investment costs fully. Therefore, the given analysis is incorrect as it does not consider the time aspect. Option A is also incorrect as it repeats the same point made in the explanation of option C. Option B is incorrect as the break-even point does not only consider the difference in system costs but also the revenue generated by the new system.

The Director of HIMS Has Calculated the Break-Even Point for Purchase