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Break-Even Analysis for a Service Business : A consulting firm operates in a highly competitive market and faces variable costs such as labor, software subscriptions,
Break-Even Analysis for a Service Business: A consulting firm operates in a highly competitive market and faces variable costs such as labor, software subscriptions, and overhead expenses. If the firm charges clients $100 per hour for its services and incurs variable costs of $50 per hour, discuss how the firm can determine its contribution margin per hour and use it to perform break-even analysis, considering both fixed and variable costs.
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