An unrealistic assumption made in traditional break-even analysis is that
A) a firm will profit at all sales amounts above the break-even point.
B) greater quantities can be sold at lower prices.
C) excess capacity exists.
D) wide variations in quantity can be sold at the same price.

Question

Quizplus · Accepted Answer

Traditional break-even analysis often assumes that a company can sell any quantity of goods at the same price, which is unrealistic because in real markets, prices often change with the quantity sold due to demand and supply dynamics.

An Unrealistic Assumption Made in Traditional Break-Even Analysis Is That