Break-Even Analysis

Multiple Choice

Break-even analysis

A) can be adapted to evaluate the quantity that needs to be sold to earn a target profit--by adding the target profit to fixed costs.
B) may result in a "break-even" quantity that it would be impossible to sell at the assumed price.
C) focuses on the contribution of each unit sold to the reduction of fixed costs.
D) All of the above are true.
E) None of the above is true.