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Your team is conducting a cost-volume-profit analysis for a new product. Different sales projections have different incomes. One member suggest picking numbers yielding favorable income
Your team is conducting a cost-volume-profit analysis for a new product. Different sales projections have different incomes. One member suggest picking numbers yielding favorable income because any estimate is "as good as any other." Another group member points to a scatter diagram of 20 months' production on a comparable product and suggests dropping unfavorable data points for cost estimation. You are the sole financial representative to this group...what do you do?
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