Breakeven analysis can be used to determine how large sales of a new product must be for the firm to achieve profitability,but it is not useful in studying the effects of a general expansion in the firm's operations.

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Breakeven analysis can be used to determine the sales required to cover costs and make a profit for a specific product or project. However, it may not be useful in studying the impacts of a general expansion of a firm's operations, as it does not consider the potential changes in costs, revenues, and profits associated with such growth. A more comprehensive analysis, such as a financial statement analysis or a feasibility study, may be needed to evaluate the feasibility and potential benefits of a general expansion plan.

Breakeven Analysis Can Be Used to Determine How Large Sales