If Portia wants to know how many t-shirts she needs to sell to cover her costs of producing and selling them, she should
A) create a balance sheet.
B) run the accounting equation.
C) analyze her accounts receivable.
D) create an income statement.
E) run a break-even analysis.

Question

Quizplus · Accepted Answer

A break-even analysis helps determine the point at which total costs and total revenue are equal, meaning no net loss or gain. This is exactly what Portia needs to find out how many t-shirts she must sell to cover her production and selling costs.

If Portia Wants to Know How Many T-Shirts She Needs