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What Assumption Does Breakeven Analysis Make That Limits Its Overall

Question 57

Multiple Choice

What assumption does breakeven analysis make that limits its overall usefulness?


A) It focuses on how to achieve a price objective.
B) It assumes a company wants to gain a certain market share.
C) It relies on demand for a product being inelastic.
D) It focuses only on competitive factors and not costs.
E) It assumes demand is elastic for the product.

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