Business analysts claim that, after breaking -even (reaching a point of no profit and no loss ), a 1 0/0 increase in sales will increase net profit by 5%. However , during the last financial year many companies that broke -even and showed more than a 1% increase in sales also recorded a decrease in net profits .

Which of the following conclusions can be made from the above information ?

A.When a company breaks -even , sales are likely to increase by at least 1%.

B.The business analysts failed to consider other factors that influence the profitability of a company.

C.The last financial year is not representative of the profit potential for companies that break even .

DSales are the most important , but not the only, factor that decides a company's profitability .

Answer rating: 100% (QA)

D Sales are the most important but not the only factor t... View the full answer