MANAGEMENT

Detailed explanation-1: -The correct answer is deep, A change in the number of units sold. Because the break even point is determined by total cost, revenues do not directly affect the break even point. If revenues are less than total cost, the company does not reach the break even point, which results in a loss.

Detailed explanation-2: -It’s important to note that a break-even analysis is not a predictor of demand. It won’t tell you what your sales are going to be, or how many people will want what you’re selling. It will only tell you the amount of sales you need to make to operate profitably.

Detailed explanation-3: -The break-even point will increase by any of the following: An increase in the amount of the company’s fixed costs/expenses. An increase in the per unit variable costs/expenses. A decrease in the company’s selling prices.

Detailed explanation-4: -break-even assumes a business will sell all of the stock (of a particular product) at the same price. businesses can be unrealistic in their calculations. variable costs could change regularly, meaning the analysis could be inaccurate. they can be time consuming to create.