Which of the following statements is true about break-even analysis?
A) It makes it appear that any quantity can be sold at the assumed price.
B) It suggests that profits will decrease rapidly as sales volume increases beyond the break-even point.
C) It is quite accurate in maximizing profit.
D) It assumes a U-shaped average variable cost curve.
E) It not helpful in evaluating alternatives.
Answer: A) It makes it appear that any quantity can be sold at the assumed price.
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Indicate whether the statement is true or false.