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

Question

Quizplus · Accepted Answer

Break-even analysis is a cost-volume-profit analysis, which involves determining the relationship between costs, volume, and profits. Therefore, break-even analysis would take place during the second step of the price-setting process, which is determining cost, volume, and profit relationships.

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