________ is the process used to determine the profitability of a product at various levels of sales.
A) Cost-based pricing
B) Break-even analysis
C) Demand-based pricing
D) Competition-based pricing

Question

Quizplus · Accepted Answer

Break-even analysis is the process used to determine the profitability of a product at various levels of sales by calculating the point at which total revenue equals total costs. This helps businesses determine the minimum amount of sales they need to make to cover their costs and start making a profit. Cost-based pricing involves setting prices based on the cost of producing and distributing the product, demand-based pricing involves setting prices based on the perceived value and demand for the product, and competition-based pricing involves setting prices based on the prices of competitors. None of these methods specifically focus on determining profitability at various levels of sales.

________ Is the Process Used to Determine the Profitability of a Product