If you did a breakeven analysis for your firm,it would be possible for you to show to your management the point at which
A)the level of sales that will cover all of the company's costs.
B)the firm would not make a profit if it sold additional units.
C)profits would be maximized.
D)the firm's fixed costs would climb sharply.

Question

Quizplus · Accepted Answer

A breakeven analysis shows the point at which total revenue equals total costs, meaning all of the company's costs are covered, but no profit is made. This helps in understanding the sales level needed to cover all expenses.

If You Did a Breakeven Analysis for Your Firm,it Would