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.
