A firm examines the relationship between its sales volume and its operating profitability by conducting a(n) _____ analysis.
A)operating breakeven (cost-volume-profit)
B)financial breakeven
C)equity breakeven
D)production capacity
E)economies of scale

Question

A firm examines the relationship between its sales volume and its operating profitability by conducting a(n) _____ analysis. 
A)operating breakeven (cost-volume-profit)
B)financial breakeven
C)equity breakeven
D)production capacity
E)economies of scale

Quizplus · Accepted Answer

Operating breakeven (cost-volume-profit) analysis helps a firm understand the minimum level of sales volume required to cover all of its operating costs and to achieve a target profit level. This analysis helps a firm make decisions related to pricing, production volume, and cost control measures.

A Firm Examines the Relationship Between Its Sales Volume and Its