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Contribution Margin and Breakeven Analysis
Essay specific features
Written by:
Joyce L
Date added:
June 27, 2016
Level:
University
Grade:
B
No of pages / words:
3 / 637
Was viewed:
5272 times
Rating of current essay:
Essay content:
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...
displayed 300 characters
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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...
displayed 300 characters
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