What information is provided to the manager by performing a break-even analysis?
A) The break-even point identifies the total costs.
B) The break-even point identifies the point where variable costs equal fixed costs.
C) Sales volume above the break-even point makes a profit for the firm.
D) The break-even point identifies the amount of markup.
E) The break-even point identifies the intersection of the demand and supply curves.

Question

Quizplus · Accepted Answer

A break-even analysis helps the manager understand the sales volume needed to cover all costs, and any sales beyond this point contribute to profit.

What Information Is Provided to the Manager by Performing a Break-Even