A break-even analysis can calculate break-even and target return volumes at different price levels.

Question

Quizplus · Accepted Answer

A break-even analysis is a tool used by businesses to identify the point at which their total revenue equals their total costs. By examining the relationship between sales volume, costs, and profits, a break-even analysis can be used to calculate break-even and target return volumes at different price levels. Therefore, the statement is true.

A Break-Even Analysis Can Calculate Break-Even and Target Return Volumes