Break-even analysis-profitability impact

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Reference no: EM1371325

1. Research the economic costs involved in the conducting break-even analysis for good or service of your choice. Assess the factors involved in conducting the break-even analysis. Find out the conditions which might exist for the manager of this good or service might decide to move forward with operations even with initial costs of operations is more than potential revenue.

2. Imagine you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby; the community is unaware. Assess the costs involved in cleaning up the water immediately (confessing) versus hiding the fact and possibly paying more in the future. Discuss the impact on profitability in both situations.

Reference no: EM1371325

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