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Break-even analysis: based on accounting profits is preferable to the financial break-even method identifies the optimal maximum level of output for any given level of

Break-even analysis:

based on accounting profits is preferable to the financial break-even method

identifies the optimal maximum level of output for any given level of fixed assets

ignores both taxes and interest when computing the financial break-even point

is unaffected by the sources of fund used to finance a project

identifies the optimal sales price for any new product

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