1. You can do a BE analysis for one product or multiple products. What is the shortcoming of the multiple product analysis? What if we took that one step further and did a BE analysis on the entire company? What could be a drawback of that analysis?
2. In BE analysis we talk about fixed and variable costs. Can some costs be a little bit of both? Explain.
3. In our calculations, BE gives us the number of units we need to produce to hit breakeven. If I were to ask you to convert that into sales dollars, how would you do that?