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Discuss the benefits and limitations of break-even analysis

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Reference no: EM132875379

Question -

a) The Break-Even Point -

Q1. Describe how to calculate contribution margin and explain the term "contribution margin".

Q2. Discuss the main point this video.

b) Break-Even Pros & Cons -

Q1. Discuss the benefits and limitations of break-even analysis.

Q2. In this video it mentioned the concept of "margin of safety". Describe how margin of safety is determined and what does margin of safety means?

c) Break Even Analysis Explained -

Q1. Explain why BE analysis is used solely for short-term analysis?

d) CVP Analysis Assumptions -

Q1. Discuss the reason for supporting the assumptions when using CVP analysis.

Reference no: EM132875379

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