Break-Even Analysis

question 238

Multiple Choice

Break-even analysis

• A) can be adapted to evaluate the quantity that needs to be sold to earn a target profit--by adding the target profit to fixed costs.
• B) may result in a "break-even" quantity that it would be impossible to sell at the assumed price.
• C) focuses on the contribution of each unit sold to the reduction of fixed costs.
• D) All of the above are true.
• E) None of the above is true.

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Definitions:

Peripheral Countries

Nations that are less developed economically and are often exploited by more developed, core countries in the global economic system.

Modernization Theory

A view of globalization in which global development is a worldwide process affecting nearly all societies that have been touched by technological change.

Max Weber

A German sociologist, philosopher, and political economist known for his theory on the Protestant ethic and his ideas on bureaucracy.

World Systems Theory

A multidisciplinary, macro-scale approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.