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Discuss the benefits and limitations of break-even analysis

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Reference no: EM132890486

Question -

a) "The Break-Even Point"

Q1. Describe how to calculate contribution margin and explain the term "contribution margin".

Q2. Discuss the main point of Contribution margin

b) "Break-Even Pros & Cons"

Q1. Discuss the benefits and limitations of break-even analysis.

Q2.  Describe how margin of safety is determined and what does margin of safety means?

c) Break Even Analysis Explained

Q1. Explain why BE analysis is used solely for short-term analysis?

d) CVP Analysis Assumptions

Q1. Discuss the reason for supporting the assumptions when using CVP analysis.

Reference no: EM132890486

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