Mnanagerial Accounting , Peter Brewer 9e

1) You want to use break-even and target profit analysis with respect to the introduction of a new product in the marketplace. Your manager says you are wasting your time because the best determination of profitability is the income statement after the this product has been introduced. Explain why your manager is wrong.

2) The fact that your organization underapplies or overapplies overhead is an indication of a problem with the people in charge of applying such overhead. Defend or attack this statement.

Please, no wikepedia, investopedia, state your references and sources clearly .