Question: 1) How does cost behavior help in developing an understanding of the cost-volume-profit analysis? 2) When fixed costs increase what happens to the break-even point?

1) How does cost behavior help in developing an understanding of the cost-volume-profit analysis?

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?

Thank you in advance!

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