Question

Break-even analysis is a technique commonly used to assess the

a. expected product profitability.
b. rate of return on investment.
c. net present value.
d. total costs.

Answer 1

Break-even analysis is a technique used to assess the expected product profitability. It helps businesses determine the point at which their total revenue equals their total costs, resulting in zero profit or loss.

Step-by-step explanation:

Break-even analysis is a technique commonly used to assess the expected product profitability. It helps a business determine the point at which its total revenue equals its total costs, resulting in zero profit or loss. By analyzing the relationship between costs, revenue, and volume of sales, the break-even analysis helps businesses make informed decisions about their pricing strategy, production levels, and cost management.