When evaluating a project to determine the break-even quantity, the advantage of a spreadsheet model is?
A) Users can't see the formulas used.
B) Calculations are always rounded to the nearest integer.
C) The analyst can use Excel's "BREAKEVEN" function to perform the calculation
D) A number of different estimates can be quickly evaluated once the model is constructed.
E) There are no advantages to spreadsheet modeling of break-even analysis.

Question

Quizplus · Accepted Answer

With a spreadsheet model, the analyst can easily change different estimates and input values to quickly evaluate different scenarios to determine the break-even quantity. This allows for more flexibility and a deeper analysis than using a fixed calculation or formula. Additionally, spreadsheet models are transparent, allowing users to see the formulas and calculations used.

When Evaluating a Project to Determine the Break-Even Quantity, the Advantage