A company that sells one product would be more likely to calculate breakeven in terms of sales units, rather than sales revenue.

Question

Quizplus · Accepted Answer

Breakeven in terms of sales units helps the company determine the specific number of units they need to sell to cover their fixed and variable costs, whereas breakeven in terms of sales revenue simply calculates the amount of revenue required to cover those costs. Since a company that sells only one product likely has a fixed price per unit, calculating the number of units needed to break even is more useful.

A Company That Sells One Product Would Be More Likely