While break-even analysis analyzes the costs of sales, it fails to take into consideration consumers' ________ to price.
Fill in the blank(s) with the appropriate word(s).
sensitivity
Break-even analysis does not reflect how demand may be affected at different price levels. In other words, it doesn't measure price sensitivity. Just because a firm will break even selling 5 widgets at a price of $200 each doesn't mean customers are willing to buy widgets at that price.
You might also like to view...
Which of Hofstede’s dimensions values meeting social obligations and avoiding embarrassment or shame?
a. Long-term orientation b. High uncertainty c. Low uncertainty d. Short-term orientation
A public–private partnership is a special type of alliance that involves _________.
a. Private firms and government organizations b. Listed public companies and unlisted private firms c. Collusion and corruption for mutual self-interest d. None of the above
During November, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of November and 110,000 that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to conversion. At the end of November, 40,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to conversion. Compute the number of equivalent units with respect to conversion for November using the weighted-average method.
A. 55,500. B. 157,000. C. 83,500. D. 185,000. E. 145,000.
Carol and Candace are equal partners in Peach Partnership. In the current year, Peach had a net profit of $75,000 ($250,000 gross income – $175,000 operating expenses) and distributed $25,000 to each partner. Peach must pay tax on $75,000 of income
a. True b. False Indicate whether the statement is true or false