One of the Limitations Associated with Break-Even Analysis Is That

question 128

Multiple Choice

One of the limitations associated with break-even analysis is that

• A)it assumes fixed costs are zero.
• B)it cannot adjust for high variable costs.
• C)it tells marketers only what price is needed to break even.
• D)it assumes that there is only one price.
• E)it assumes that demand is extremely inelastic.

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Definitions:

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