Pin Co.determined that based upon their costs,they will have to sell 2,000,000 pins before they make any profit.Which of the following quantitative methods is Pin Co.using?
A) break-even analysis
B) capital budgeting
C) linear programming
D) probability theory

Question

Quizplus · Accepted Answer

Pin Co. is using break-even analysis, which is a quantitative method for determining the point at which total revenues equal total costs and the company breaks even. In this case, the company has determined that they must sell 2,000,000 pins to cover their costs and make a profit, which is a break-even point.

Pin CoDetermined That Based Upon Their Costs,they Will Have to Sell