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How is the breakeven point computed?
The Break Even Point (BEP) can be computed by using the given relation as follows:
BEP = F / 1-V/P
Here F is fixed cost, P is the selling price of each unit and V is variable cost per unit or total variable cost.
Is leadership essential to the development of ethical decision making in modern organisations?
It allocates costs based on the price elasticity of demand. Yet higher the elasticity (elastic), the lower the charge of fixed costs when allocated amongst products.
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