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Prepare a break even and sensitivity analysis

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Reference no: EM133070266

Question - Prepare a break even and sensitivity analysis using: 1. Cash flow and 2. Present value of cash flow. Compare the two results and explain to a CEO in a follow up memo explaining why computing break even is important for capital budgeting.

Fixed Costs $25,000

Direct Labor 100

Direct materials 75

Shipping 25

Sales Commission 50

Total VC/unit 225

Price per unit 500

Reference no: EM133070266

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