Breakeven analysis adjusted for a targeted profit
A)is a difficult computation that is not normally employed.
B)decreases the number of units required to breakeven.
C)is excellent for performing "what-if" analysis.
D)is a poor basis for evaluating the profitability of a venture.

Question

Quizplus · Accepted Answer

Breakeven analysis adjusted for a targeted profit is excellent for performing "what-if" analysis because it allows businesses to calculate how changes in costs, selling prices, or volume affect profitability, including achieving specific profit goals.

Breakeven Analysis Adjusted for a Targeted Profit