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What is cost-volume-profit analysis and when is it particularly useful? Identify the important assumptions that underline cost-volume-profit analysis. What is the unit contribution margin? How

  1. What is cost-volume-profit analysis and when is it particularly useful?
  2. Identify the important assumptions that underline cost-volume-profit analysis.
  3. What is the unit contribution margin? How is it used in computing the unit break-even point?
  4. What is the contribution margin ratio and when is it most useful?
  5. How is the break-even equation modified to take into account the sales required to earn a desired profit?

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