Question: 1) How does cost behavior help in developing an understanding of the cost-volume-profit analysis? Please illustrate a Cost-Volume-Profit income statement. 2) When fixed costs increase

1) How does cost behavior help in developing an understanding of the cost-volume-profit analysis? Please illustrate a Cost-Volume-Profit income statement.

2) When fixed costs increase what happens to the break even point? Why?

3) Discuss a few examples of when knowing cost-volume-profit analysis can help make better decisions?

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