Break-even quantities and operating leverages

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Reference no: EM1370412

1- Explain how the break-even quantities and operating leverages are affected by the relationships between fixed and variable costs.

2- Explain how expanding a company's division with the highest operating leverage would affect the company's risk position.

3- Explain how a break-even calculation (based on different price levels) can affect your analysis, and use the notion of operating leverage to assess the risks and rewards associated with production level option.

Reference no: EM1370412

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