Which Condition Would Result in Invalidating an Application of Break-Even

Multiple Choice

Which condition would result in invalidating an application of break-even analysis?

A) The variable cost to produce a unit is less than one percent of the fixed cost to run the plant.
B) The purchasing department both offers quantity discounts to customers and receives quantity discounts from suppliers.
C) The variable cost to produce a unit is within one percent of the sale price.
D) The labor to manufacture the item is free.