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Calculate a break even point for a business

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Question

Generally, Cost Volume Profit Analysis (CVP) is used for one of two possible reasons. It is either used to calculate a break even point for a business, or to help in measuring for a target profit and the sales volume needed to reach that profit.

Of the two, which do you think is more important for a business? Explain your answer in detail.

Reference no: EM132338490

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