If you did a breakeven analysis for your firm,it would be possible for you to show 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 level of sales at which the company will cover all of its costs, both fixed and variable. This information is useful in determining the minimum level of sales the firm must reach to avoid incurring losses. It does not provide information on profits or fixed costs.

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