A Firm Would Conduct Operating Breakeven Analysis Primarily to Determine

question 57

Multiple Choice

A firm would conduct operating breakeven analysis primarily to determine the:

• A)minimum value of assets that it should hold to achieve profitability.
• B)maximum amount of the total assets that should be financed with debt.
• C)minimum earnings that should be retained and the earnings that should be paid out as dividends.
• D)level of capacity utilization required to achieve its forecasted sales level.
• E)level of sales a new product must achieve to be profitable.