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Contribution Margin And Breakeven Analysis

Contribution Margin and Breakeven Analysis

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Title: Contribution Margin and Breakeven Analysis

Essay Details:

Subject: Business

Author:

Date: November 12, 2015

Level: University

Grade: A

Length: 3 / 637

Essay text:

Cost-volume-profit analysis provides useful information concerning sales that are necessary to in order to break even or to earn a target profit. This analysis illustrates how profit is affected when the costs, volume, or prices of products or services are changed. Maria should calculate either lemon creme cookies or real mint has a greater contribution margin per unit. Contribution margin per unit is defined as contribution per unit divided by price per unit. Since lemon creme cookies production has a higher contribution margin per unit, Maria should accept the bulk order by reducing the current production volume for real mint cookies...

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