Which of the following statements are correct to describe the Break Even Point Analysis?1) If the Break Even Point is expressed in terms of production capacity rate (%), a larger Break Even Point implies a lower project risk.2) The Break Even Point should be calculated based on the normal year after the project commissioning, instead of the average value within the period.3) The relationship between the Break Even Point expressed in terms of production capacity rate (BEP(%)) and the Break Even Point expressed in terms of quantity (BEP(Q)) is: BEP(Q)=BEP(%) × Design Production Capacity4) Break-even point analysis is suitable for financial evaluation onlyQuestion 10Select one:a.1,2,3b.2,3,4c.1,2,3,4d.3,2,1

The correct answer is b.2,3,4.

Here's why:

1. This statement is incorrect. A larger Break Even Point in terms of production capacity rate (%) actually implies a higher project risk, not lower. This is because it means the company needs to sell a higher percentage of its production capacity to cover its costs.

2. This statement is correct. The Break Even Point should indeed be calculated based on the normal year after the project commissioning, instead of the average value within the period. This is because the normal year is more representative of the company's regular operations.

3. This statement is correct. The relationship between the Break Even Point expressed in terms of production capacity rate (BEP(%)) and the Break Even Point expressed in terms of quantity (BEP(Q)) is indeed: BEP(Q)=BEP(%) × Design Production Capacity.

4. This statement is correct. While break-even point analysis is often used in financial evaluation, it is not limited to it. It can also be used in other areas such as marketing and operations to help make strategic decisions.