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Define analysis of contribution margin and break even point

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Question: Reply to below in 150 words

The analysis of contribution margin and break even point is truly just a tool that is used by management accountants to for see any changes to be made in the future. We don't normally see these type of calculations on a final financial income statement. Price changes and product improvement analysis have become some of the advantages to calculating contribution margin and break even point, and this is highly stressed in the book because these are management tools used in order to manage the costs and revenues of a business for future financial decisions. I would say there isn't really anything missing in this analysis.

Reference no: EM132292995

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