Which of the Following Statements Is True About Break-Even Analysis

Multiple Choice

Which of the following statements is true about break-even analysis?

A) It assumes that the demand curve is perfectly horizontal at the selling price.
B) It reveals the price that will earn the highest profit.
C) It cannot be used for comparing several different alternatives (for example, assuming different prices) .
D) It considers the effect of price on the quantity that consumers will want.
E) It helps to compute break-even point in units alone.