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1. “Breakeven analysis isn’t very useful to a company because companies need to do more than break even to survive in the long run.” Explain why you agree or disagree with this statement. (p. 413)
2. Rondell Pharmacy is considering switching to the use of robots to fill prescriptions that consist of oral solids or medications in pill form. The robots will assist the human pharmacists and will reduce the number of human pharmacy workers needed. This change is expected to reduce the number of prescription filling errors, reduce the customer’s wait time, and reduce the total overall costs. How does the use of the robots affect Rondell Pharmacy’s cost structure? Explain the impact of this switch to robotics on Rondell Pharmacy’s operating risk. (p. 414)
Braun, Tietz, Harrison. Managerial Accounting, 2nd edition. Prentice Hall, 2010. (chapters 6 and 7)
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