When we use breakeven analysis to find a location for a manufacturing facility,we take into account ______.
A)revenues
B)profits
C)costs
D)production quality

Question

Quizplus · Accepted Answer

When conducting a breakeven analysis for a manufacturing facility, we need to take into account the costs involved, including fixed costs (such as rent, utilities) and variable costs (such as raw materials, labor). This analysis helps us to determine the level of production and sales required to cover all costs and reach the breakeven point. While revenues and profits are also important factors, they are dependent on the cost structure of the business, which is why cost analysis is the most critical component of breakeven analysis. Production quality may be important for customer satisfaction and brand reputation, but it is not directly related to determining the breakeven point.

When We Use Breakeven Analysis to Find a Location for a Manufacturing