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Practical Utility of Break-even Analysis

Management Accounting, Notes

Practical Utility of Break-even Analysis

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Practical Utility of Break-even Analysis

 

Break-even Analysis can be used to show the effect of a change in any of the following profit factors:

 

(1)  Change in selling price

(2)  Change in volume of sales

(3)  Change in variable costs

(4)  Change in fixed costs

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