Gabrielle and her business partners are starting a new business that sells organic shampoo. After analyzing the market they have a projected sales forecast showing that they must sell 50,000 bottles of shampoo in 12 months
to breakeven. Calculating the variable unit cost and projected unit price gives a break-even volume of 45,000
bottles. Why should the projected unit price be changed based on the break-even volume?
a.
b.
c.
d.
The break-even volume is too close to the forecasted unit sales.
The break-even volume is much greater than the forecasted unit sales.
The break-even volume is drastically lower than the forecasted unit sales.
The break-even volume is not related to the forecasted unit sales.
Please select the best answer from the choices provided
A
B