Break-even charts usually assume that:
A) total cost and total revenue curves are straight lines.
B) profits will grow continually beyond the break-even point.
C) the break-even point is reached when total cost just equals total revenue.
D) any quantity can be sold at the assumed price.
E) All of these are assumptions of break-even charts.

Question

Quizplus · Accepted Answer

Break-even charts typically assume that total cost and total revenue curves are linear, implying that any quantity can be sold at the assumed price, and that the break-even point occurs when total costs equal total revenues. This simplifies the analysis, making it easier to visualize and understand the relationship between costs, revenues, and profits.

Break-Even Charts Usually Assume That