Breakeven analysis can be used to

	study the effects of a general expansion in the level of the company's operations.
	analyze the consequences of the investment in new fixed equipment when modernizing or expanding.

	evaluating the benefits or consequences of investing in a new product line or a new project.
	determine how large the sales of a new product must be for the company to be profitable.

All of the answers shown.

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Question 295 pts

If a company is operating at its operating breakeven point,

	profit must be greater than zero.
	total fixed costs must be less than total variable costs.

	None of those shown.
	total revenues must be greater than total cost.

total revenues are equal to total cost.

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Question 305 pts

Seth, Inc. isplanning to sell 50,000 flashlights. Variable costs are $2.50 per flashlight, and operating fixed costs total $100,000. At what price must each flashlight be sold to achieve an operating profit (EBIT) of $90,000?

	$4.20
	$4.50

	$6.30
	None of those shown

$3.80