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Explain cost volume profit analysis

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Question - Management has an objective to maximize the wealth of shareholder. Therefore they willing to earn pro?t but want to know the sales level where no pro?t or loss will be arise.

Required - Explain Cost Volume profit analysis. You answer covers the following details.

(a) Breakeven sales and how to calculate it.

(b) How to calculate sales if management wants to earn pro?t.

(c) Margin of safety and how to calculate it.

Reference no: EM132559673

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