Question
An entrepreneur is contemplating starting up a new company. After some analysis, the entrepreneur is absolutely certain to sell 10,000 units. The break-even point calculation
An entrepreneur is contemplating starting up a new company. After some analysis, the entrepreneur is absolutely certain to sell 10,000 units. The break-even point calculation reveals 3,000 units. What should the entrepreneur do?
A. Launch the company because there is little risk since the break-even point is well below expected sales
B. Launch the company because the risk of not reaching the break-even point is high
C. none of the above
D. Do not start the company because according to the calculation, the break-even point will not be reached
E. do not start the company because the risk is too high
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