A breakeven analysis can determine?

A breakeven analysis determines how many units a company needs to sell to cover both fixed and variable costs, which ultimately aids in understanding when the company will start making a profit. In this context, the correct answer reflects that breakeven analysis can indeed help assess the financial implications of investing in a new piece of equipment, as it influences fixed costs. By knowing the breakeven point related to that investment, the company can plan sales targets accordingly to ensure the new equipment is financially viable.

While other options may seem related to sales and financial planning, they don't accurately represent the primary focus of a breakeven analysis. For instance, the analysis does not specifically focus on variable costs alone or guarantee a calculation of total profits for the year, which encompasses factors beyond just breakeven points, such as revenue, expenses, and overall performance. Additionally, assessing the market value of a company is a broader financial analysis that incorporates many other metrics and is not directly determined by breakeven calculations. Thus, the focus on how many units need to be sold for a specific investment aligns directly with the function of breakeven analysis.