Why is a breakeven analysis considered only a supply side an

Why is a breakeven analysis considered only a supply side analysis?

Solution

Break-even analysis is considered only a supply-side analysis because it analyses only the cost of goods sold. It does not analyze how the demand is affected by the change in price levels.

Break-even analysis is used to calculate the number of units to be sold in order to have no profit or loss. For this only costs of goods sold are used.

Why is a breakeven analysis considered only a supply side analysis?SolutionBreak-even analysis is considered only a supply-side analysis because it analyses onl

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