Explain why pricing and production are extent decisions and not decisions that should be tackled with break-even analysis. Does the same apply for investment decisions? Provide a rationale to support your response.
Pricing and production are extent decisions because they involve choosing the level of output or sales for a product or service. Break-even analysis is a tool that can be used to help make these decisions, but it is not the only factor that should be considered.
Break-even analysis can help businesses determine the minimum sales volume required to cover total costs and break even. However, it does not take into account other factors that may be important to businesses, such as market share, profit margins, and customer satisfaction.
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