Break-even analysis for a service company involves identifying the correct measure of a.direct labor for the unit of analysis. b.activity for the unit of analysis. c.raw materials for the unit of analysis. d.overhead

Respuesta :

Answer:

b.activity for the unit of analysis

Explanation:

The break even point is the point at which the firm has no loss no profit situation

It can be determined in terms of units or in terms of dollars

Here, the break even analysis is done for a service company that involves an activity for unit analysis.

Let us take an example of hospital. The patients, chairs , doctors etc are the units of the activity held i.e hospital