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Question 2: The following diagram showing costs and revenues over arrange of activity levels: B Loss Q Break-Even Point Profit Revenue Costs C Variable

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Question 2: The following diagram showing costs and revenues over arrange of activity levels: B Loss Q Break-Even Point Profit Revenue Costs C Variable Costs Fixed Costs Output Interpret the above diagram and explain how it explains the issue that the operational managers should consider when making decisions. You should include the explanations of the sales, total cost and fixed cost lines. (8 Marks)

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