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)select an appropriate (approximate)price level
C)estimating demand and revenue
D)determining cost, volume, and profit relationships

Question

Quizplus · Accepted Answer

Break-even analysis is a technique used to determine the minimum amount of sales required to cover all costs and start generating profits. As such, it falls under the stage of determining cost, volume, and profit relationships in the price-setting process.

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