Break-Even Analysis Can Be Used by a Firm That Produces

question 126

Multiple Choice

Break-even analysis can be used by a firm that produces more than one product, but:

• A) the results are estimates, not exact values.
• B) the firm must allocate some fixed cost to each of the products.
• C) each product has its own break-even point.
• D) the break-even point depends upon the proportion of sales generated by each of the products.
• E) None of these statements is true.

---

Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.