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Determine the break-even point

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Reference no: EM133121290

Miss Ellaneous Bakery is considering the addition of a new line of pies to its product offerings. Now you will help consider the decisions that managers make regarding the cost structure of the firm. These decisions will, in turn, impact the decisions they make regarding methods of financing the firm's assets and pricing the firm's products.

Please discuss how the firm can determine the break-even point. In other words, at what level of production, the firm can make a profit that is equal to the cost? How to measure the firm's business risk? What are the factors that you need to consider regarding the addition of a new line? Share your personal experience in measuring business risk and comments on others.

Reference no: EM133121290

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