Question: Please answer the following questions: 1. Which format shows the gross profit margin and which one shows the contribution margin? Explain the difference between both.
Please answer the following questions: 1. Which format shows the gross profit margin and which one shows the contribution margin? Explain the difference between both. 2. Which format would you use to conduct a break-even analysis (explain why)? Which format is better to understand the total costs it takes to create a product (explain why)? 3. Using January 2016 data, and assuming 1,000,000 units were sold, calculate the break-even point in: a. Units b. Total Revenues Explain how the Contribution Margin format distinguishes cost behavior and why this is important for analytical decision-making.
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