Dennis Rathke wants Rathke Company to use CVP analysis to study the effects of changes in costs

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Dennis Rathke wants Rathke Company to use CVP analysis to study the effects of changes in costs and volume on the company. Rathke has heard that certain assumptions must be valid in order for CVP analysis to be useful.

Instructions
Prepare a memo to Dennis Rathke concerning the assumptions that underlie CVP analysis.

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Managerial Accounting Tools for business decision making

ISBN: 978-0470477144

5th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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