The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place in which stage of the price-setting process?
A)identifying pricing objectives and constraints
B)determining cost, volume, and profit relationships
C)estimating demand and revenue
D)select an appropriate (approximate) price level
E)make special adjustments to list or quoted price

Question

Quizplus · Accepted Answer

The break-even point calculation falls under the stage of determining cost, volume, and profit relationships in the price-setting process. This is because it involves analyzing the relationship between the costs incurred by the farming operation and the volume of corn that needs to be produced to break even.

The Break-Even Point for a Large Grain Farming Operation Was