Which of the following questions does break-even analysis not attempt to address?
A) How much do changes in volume affect costs and profits?
B) At what point does the firm break even?
C) What is the most efficient level of capital assets to employ?
D) Percentage change in earnings per share.

Question

Quizplus · Accepted Answer

Break-even analysis is a tool to determine at which point a company is making neither profit nor loss. It answers questions regarding the break-even point, how changes in volume affect costs and profits, and the impact of price and cost changes on profitability. However, it does not attempt to address questions related to earnings per share, which are more concerned with the financial performance of the company's stock.

Which of the Following Questions Does Break-Even Analysis Not Attempt