Which statement about breakeven analysis is correct?

Which statement about breakeven analysis is correct?

• A. It determines the profit level for the first year.
• B. It tells how many units must be sold to cover fixed costs plus desired profit.
• C. It determines the number of units where revenue just covers total costs; break-even units = fixed costs / (price - variable cost per unit).
• D. It calculates the payback period for the investment.

Answer: (C)