Part 1[3]
Explain one limitation that Frank faces when using break-even analysis.
Business 9609 · AS & A Level · Costs
Costs — practice question
Worked solution & mark scheme
This 3-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Knowledge: Give one weakness of break-even analysis (for example, fixed costs are assumed to stay constant; output is assumed to match sales; unit variable costs are assumed to stay constant; price is assumed to stay constant; it is only useful for a single product; outside changes are ignored; it is just an estimate; fixed costs are difficult to allocate).” …
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