Breakeven analysis adjusted for a profit factor
A) is a difficult computation that is not normally employed.
B) will not necessarily increase the number of required units.
C) is often adapted for different sales levels to aid in determining the possible levels of potential profit.
D) is a poor basis for evaluating the profitability of a venture.

Question

Quizplus · Accepted Answer

Adjusting breakeven analysis for a profit factor involves considering the desired profit margin in addition to the fixed and variable costs. This can help determine different sales levels at which the desired profit can be achieved, and aid in evaluating the potential profitability of a venture. It does not necessarily increase the required number of units, as the profit margin influences the price per unit. Therefore, option A, B, and D are incorrect.

Breakeven Analysis Adjusted for a Profit Factor