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Explain as clearly and pedagogically as possible why a company's potential acquisition of a larger fixed asset is often considered relevant to analyze from a

Explain as clearly and pedagogically as possible why a company's potential acquisition of a larger fixed asset is often considered relevant to analyze from a financial management perspective.

Explain why contribution calculations can sometimes provide more valuable information than cost calculations. Give an illustrative example of this and motivate your answer in as nuanced and pedagogical a way as possible.

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