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Cost behavior and cost-volume-profit analysis

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Reference no: EM132717904

Cost behavior and Cost-volume-profit analysis

1. Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet Gouda has a lower break-even point than Cheddar. Explain the reason.

2. Assuming Gouda is above the break-even point, what will happen for each unit sale? What are the areas that the company should focus on to ensure that they exceed their break-even points on a consistent year-to-year basis?

Reference no: EM132717904

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