Business, 04.10.2019 22:20 brid7931

Break-even analysis:

(a) identifies the optimal maximum level of output for any given level of fixed assets.
(b) based on accounting profits is preferable to the financial (or present value) break-even method.
(c) identifies the optimal sales price for any new product.
(d) ignores both taxes and interest when computing the financial break-even point.
(e) provides a means of determining the minimal number of units that need to be sold to prevent a financial loss.

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Break-even analysis:

(a) identifies the optimal maximum level of output for any given...