The break-even analysis helps the salesperson in determining:
A)The level of sales at which the total cost equals total revenue
B)The level of revenue at which the total sales equals total cost
C)The level of cost at which the total sales equals total revenue
D)The level of gross profit at which the total cost of goods sold equals total revenue
E)The level of cost of goods sold at which the total gross profit equals total sales

Question

Quizplus · Accepted Answer

The break-even analysis helps the salesperson in determining the level of sales at which the total cost equals total revenue. This helps to analyze the minimum level of sales that the company needs to generate to cover all its expenses and start generating profits.

The Break-Even Analysis Helps the Salesperson in Determining