Which of the following statements is true about break-even analysis?
A)It makes it appear that any quantity can be sold at the assumed price.
B)It suggests that profits will decrease rapidly as sales volume increases beyond the break-even point.
C)It is quite accurate in maximizing profit.
D)It assumes a U-shaped average variable cost curve.
E)It not helpful in evaluating alternatives.

Question

Quizplus · Accepted Answer

The break-even graph,with its straight-line total revenue curve,makes it seem that any quantity can be sold at the assumed price.This usually isn't the case,however.

Which of the Following Statements Is True About Break-Even Analysis