Regarding break-even analysis,a good marketing manager knows that
A)a high fixed-cost contribution per unit will lead to high profits.
B)assuming a straight-line total revenue curve incorrectly suggests that any quantity can be sold at the assumed price.
C)break-even analysis is useless for comparing pricing alternatives.
D)the usual straight-line total cost curve applies only when economies of scale exist.
E)a break-even chart is a complicated visual aid for computing the break-even point.

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.

Regarding Break-Even Analysis,a Good Marketing Manager Knows That