Limitations of break-even analysis
Limitations of break-even as a decision-making tool (AO3)The limitations of break-even analysis as a decision-making tool include the following points:Prices are assumed to be constant (the linear Total Revenue line is shown to have a constant gradient) but in reality many businesses offer price discounts to loyal customers and those who buy large quantities.Costs are assumed to be constant (the Total Cost line is shown...
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