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1. What does incremental analysis mean? 2. If one company's costs are mostly variable, and another's are mostly fixed, but they have the same sales
1. What does "incremental analysis" mean? 2. If one company's costs are mostly variable, and another's are mostly fixed, but they have the same sales and NOI, when sales increase, which company will have a greater increase in NOI? Explain. 3. What is a "break-even point"? What is contribution margin equal to at the break-even point? 4. Assume a company sells a high-margin product and a low-margin product. If the company experiences an increase in the break-even point and lower net income for the same level of sales, which product did our sales shift to? Explain
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