Breakeven analysis determines the level of sales at which the business will earn enough revenue to cover all of its costs.

Name: Breakeven analysis determines the level of sales at which the business will earn enough revenue to cover all of its costs.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Breakeven analysis is a tool used by businesses to identify the minimum level of sales required to cover all the fixed and variable costs. It helps businesses to make better decisions related to pricing, production volume, and sales volume.

Breakeven Analysis Determines the Level of Sales at Which the Business