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1. Christine is a restaurant owner of Minipizza, which sells Italian pizzas and spaghetti. She recently employs Maggie as her accountant and requests her to
1. Christine is a restaurant owner of Minipizza, which sells Italian pizzas and spaghetti. She recently employs Maggie as her accountant and requests her to prepare the annual budget of Minipizza. After Maggie submits the budget, Christine has raised out the following questions: a. Why is knowledge of cost behavior important for Christines decision making? Give an example to illustrate your answer. (20 marks) b. Since break-even analysis focuses on making zero profit, it is of no value in determining the units Minipizza must sell to earn a targeted profit. If you were Maggie, do you agree or disagree with this statement? Please explain your answer to Christine (20 marks)
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