Question: 1 . Analyze how changes in cost structure affect cost - volume - profit relationships. 2 . Make the decision 3 . Eliminate the product
Analyze how changes in cost structure affect costvolumeprofit relationships.
Make the decision
Eliminate the product line
Evaluate the costs and benefits of the alternatives
Prioritize products to maximize shortterm profits
Determine the decision alternatives
Process the product further
Review the results of the decision
Use costvolumeprofit analysis to determine sales needed to break even.
Identify the decision problem
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