Question

When evaluating a project to determine the break-even quantity, the advantage of a spreadsheet model is?

Multiple Choice1. There are no advantages to spreadsheet modeling of break-even analysis.2. The analyst can use Excel's "BREAKEVEN" function to perform the calculation3. Users can't see the formulas used.4. Calculations are always rounded to the nearest integer.

Answer 1

The correct answer is the option 2: The analyst can use Excel's ''BREAKEVEN'' function to perfom the calculation.

Step-by-step explanation:

To begin with, a breakeven analysis is the name that receives a study whose main purpose is to establish the amount of sales that are required to break-even after incorporating all costs that the production and everyday operations cost.

Secondly, in Office's Excel any person can accomplish the creation of a break-even analysis in it and one of the most common ways to do that is to create a break-even calculator or either using a built-in Excel's tool called Goal Seek. Moreover, the person uses the first one to let the Excel system calculates based on unit or based on price and the system will enter the result by its own methods after the person put every value of the variables.