Breakeven Analysis Is Used by a Firm ________

question 119

Multiple Choice

Breakeven analysis is used by a firm ________.

• A) to determine the level of operations necessary to cover all fixed operating costs
• B) to determine the least cost of producing goods and services
• C) to evaluate the profitability associated with various levels of sales
• D) to determine the demand of a product

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Definitions:

Unreasonably Dangerous Product

In product liability, a product that is defective to the point of threatening a consumer’s health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.

Tort Action

A lawsuit brought to obtain a private civil remedy for harm caused by wrongful conduct.

Strict Liability

A legal doctrine that holds a party responsible for their actions or products without the plaintiff having to prove negligence or fault.

Product Liability

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.