The financial analysis for your new product shows that for the fist year you must sell 100 000 units at an average selling price of $10.00 in order to cover the costs of introduction, marketing, and development. The financial process used to arrive at these numbers is called
A) co-variant analysis.
B) financial analysis.
C) break-even analysis.
D) statistical analysis.
E) risk analysis.

Question

Quizplus · Accepted Answer

The financial process used to arrive at these numbers is called break-even analysis, which calculates the number of units or sales needed to cover the costs of introduction, marketing, and development. Co-variant analysis and statistical analysis refer to different types of data analysis, and risk analysis may be used to evaluate potential risks associated with the introduction of the new product, but they do not specifically relate to determining the necessary sales volume to cover costs. Financial analysis is a more general term that encompasses various types of analyses, including break-even analysis.

The Financial Analysis for Your New Product Shows That for the Fist