The break-even point for a large grain farming operation was calculated to be 2 million bushels of corn.Break-even analysis would take place in which stage of the price-setting process?
A)identifying pricing constraints and objectives
B)determining cost, volume, and profit relationships
C)estimating demand and revenue
D)select an appropriate (approximate) price level

Question

Quizplus · Accepted Answer

Break-even analysis is a part of determining cost, volume, and profit relationships in the price-setting process. The calculation of the break-even point helps in identifying the minimum amount of production needed to cover all costs, and it is an essential step in determining the optimum price for a product.

The Break-Even Point for a Large Grain Farming Operation Was