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Question #1: Explain in detail to a non-accounting person how fixed and variable costs per unit respond to volume increases? Be detailed and give an
Question #1: Explain in detail to a non-accounting person how fixed and variable costs per unit respond to volume increases? Be detailed and give an example
Question #2: The owner of a business is generally only interested in making money not breaking even. Explain the value of break-even analysis - in what ways can a company benefit from using Break-Even analysis?
Question #3: Assume P's Bakery Shop has fixed costs per month of $3,600 and variable costs are 55% of sales. What amount of monthly sales allows the shop to break-even?
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