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 to compute 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. But this usually isn't true.

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