Which technique of managerial control determines the level of activity at which the firm can earn its target profits ?

Breakeven Analysis

The correct answer is option (3) : Breakeven Analysis

The technique of managerial control that determines the level of activity at which the firm can earn its target profits is:

(3) Breakeven Analysis

Breakeven analysis is a financial tool that helps determine the level of sales or activity at which a company's total revenues equal its total costs, resulting in zero profit. It is often used to assess when a company will start making a profit and is a valuable tool for managerial control and decision-making.

Breakeven analysis is a technique used by managers to study the relationship between costs, volume and profits. It determines the probable profit and losses at different levels of activity. The sales volume at which there is no profit, no loss is known as breakeven point. It is a useful technique for the managers as it helps in estimating profits at different levels of activities.