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

question 83

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 only tells marketers 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:

Inter-relatedness

The condition or fact of being connected and having reciprocal effects or influences among components or variables.

Demand

The willingness and ability of consumers to purchase a particular quantity of goods or services at a given price and time.

Toothpaste

A paste or gel used with a toothbrush to clean and maintain the aesthetics and health of teeth.

Toothbrushes

Oral hygiene instruments consisting of a small brush on a handle used to clean teeth.