Which method is used to determine the number of units a firm must sell at a specific price to cover all costs?
A) incremental analysis
B) ratio analysis
C) breakeven analysis
D) fixed-cost pricing

Question

Quizplus · Accepted Answer

Breakeven analysis is used to determine the number of units a firm must sell at a specific price to cover all costs. Incremental analysis identifies the financial impact of a decision by comparing the costs and benefits of alternative future outcomes. Ratio analysis involves analyzing a company's financial statements to assess its performance, while fixed-cost pricing involves setting prices based on the fixed costs of production.

Which Method Is Used to Determine the Number of Units