Gabrielle and her business partners are starting a new business that sells organic shampoo. after analyzing the market they have a projected sales forecast showing that they must sell 50,000 bottles of shampoo in 12 months to break-even. calculating the variable unit cost and projected unit price gives a break-even volume of 45,000 bottles. why should the projected unit price be changed based on the break-even volume?

a.
the break-even volume is too close to the forecasted unit sales.
b.
the break-even volume is much greater than the forecasted unit sales.
c.
the break-even volume is drastically lower than the forecasted unit sales.
d.
the break-even volume is not related to the forecasted unit sales.

a. The break-even volume is too close to the forecasted unit sales.

Step-by-step explanation:

We are given After analyzing the market they have a projected sales forecast showing that they must sell 50,000 bottles of shampoo in 12 months to break-even. Calculating the variable unit cost and projected unit price gives a break-even volume of 45,000 bottles.

So we are asked Why should the projected unit price be changed based on the break-even volume.

If we make change in the unit price then we can meet the requirement of selling 50,000 bottles.

So, The break-even volume is too close to the forecasted unit sales that's why we should change projected unit price on the break-even volume.

∠cbe and ∠deb are same-side interior angles.

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