When Forecasting Industry Sales It Can Be Useful to

question 5

Multiple Choice

When forecasting industry sales it can be useful to

• A) Utilize the industry life cycle.
• B) Use earnings multiplier of the stock market.
• C) Use the relationship between an industry and the aggregate economy.
• D) All of the above.
• E) Choices b and c.

---

Definitions:

Break-even Point

The level of production or sales at which total revenues equal total expenses, and the business makes neither a profit nor a loss.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to covering fixed costs and generating profit.

Break-even Point

The point at which total costs and total revenue are equal, meaning that there is no net loss or gain, and the business is not making a profit.

Direct Materials Cost

The cost of raw materials directly used in the production of products or services.