Samantha's boss has asked her to find the quantity of pens they will have to produce in order to balance out the costs that get put into production.Which method should she use to determine this number?
A)Break-even analysis
B)Capital budgeting
C)Queuing theory
D)Probability theory

Question

Quizplus · Accepted Answer

Break-even analysis is the most appropriate method to determine the quantity of pens they will have to produce in order to balance out the costs. Break-even analysis calculates the point at which total revenue equals total costs, allowing Samantha to determine the minimum number of pens that need to be sold to break even.

Samantha's Boss Has Asked Her to Find the Quantity of Pens