Break-even analysis is:
A)a process that investigates the magnitude of difference between marginal revenue and marginal cost.
B)a method of determining just how much a consumer is willing to pay for a product or service.
C)a technique that analyzes the relationship between total revenue and total cost to determine profitability at various levels of output.
D)the process of determining the quantity of product consumers will buy relative to the quantity produced by the firm.

Question

Quizplus · Accepted Answer

Break-even analysis is a technique that examines the relationship between total revenue and total cost to identify the point at which the company breaks even or makes a profit. This analysis helps the company determine the profitability of different output levels and make informed decisions about pricing and production.

Break-Even Analysis Is