What will a break-even analysis show?
A) What price level will generate a profit.
B) What competitors charge for their products.
C) What variable costs need to be controlled in order to generate a profit.
D) The most that should be charged.
E) What fixed costs need to be controlled in order to generate a profit.
Answer: A
Explanation: Note that break-even analysis doesn't dictate what price you should charge; rather, it provides some insight into the price you can charge and begin to generate profit.
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