Question

"The difference between break-even analysis and target profit analysis is the ______.

A.selling per unit price
B.total amount of fixed costs
C.amount that profit is set to
D.formula that is used"

Answer 1

The difference between break-even analysis and target profit analysis is the amount that profit is set to. Break-even analysis determines the quantity of output needed to cover costs, while target profit analysis sets a specific profit goal.

Step-by-step explanation:

The difference between break-even analysis and target profit analysis is the amount that profit is set to. Break-even analysis is used to determine the quantity of output a firm needs to sell in order to cover its costs and achieve zero profit. Target profit analysis, on the other hand, involves setting a specific profit goal and determining the quantity of output and price needed to achieve that goal.