Identify a Disadvantage of Break-Even Analysis

question 215

Multiple Choice

Identify a disadvantage of break-even analysis.

• A) It is not possible to include a target profit in this method.
• B) It is not helpful for evaluating what might happen to profits in different market environments.
• C) It does not consider the effect of price on the quantity that consumers will want.
• D) It is not helpful for evaluating alternatives.
• E) It is an extremely complicated method.

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