Which of the following is a feature of the breakeven analysis?
A) It assumes that a firm is selling more than one products at a particular price.
B) It assumes that the production cost per unit is a variable.
C) It examines a business's fixed costs only.
D) It requires that total revenues should be lower than total costs.
E) It translates into a situation in which the profit level of a firm is zero.

Question

Quizplus · Accepted Answer

Breakeven analysis determines the point at which a business reaches a zero-profit level by analyzing the fixed costs, variable costs, and revenue associated with a particular product or service. Therefore, the correct answer is E - it translates into a situation in which the profit level of a firm is zero.

Which of the Following Is a Feature of the Breakeven