Which of the following is true of simple break-even analysis?

Which of the following is true of simple break-even analysis?


a.

​It ignores the demand for a product.

b.

​It ignores the selling price of a product.

c.

​It does not give weightage to the cost of labor that is incurred during production.

d.

​It is applicable only when the demand for a product is elastic.



Answer: a.

​It ignores the demand for a product.


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