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Explain differences between operating income and net income

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Cost Volume Profit Analysis can plan many different roles in the overall management decision making process. Consider the following problems related to cost accounting and in a Word document, provide at least a 2-paragraph response to each one. Be sure to proofread your work prior to submitting to the drop box.

• Describe cost volume profit analysis and how management can use it in more than just financial analysis.

• Explain the main differences between operating income and net income overall for a business.

• Explain and provide the calculation for how to derive the following: contribution margin, contribution margin per unit, and contribution margin percentage.

• Describe what sensitivity analysis is and how it could be used by management to determine the proper course to take for decisions that need to be made for the firm.

• How might a company with multiple products derive its breakeven point? What are some of the challenges in determining this?

Reference no: EM131195853

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