Ch. 5 Assigment.doc - Ch 5 Assignment Wendy Parwana p.143 1...

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Ch. 5 Assignment Wendy Parwana p.143 1) It allows the company to calculate the account it needs to break even and explores how volume, cost and profits affect one another. 3) A labor intensive company will have lower overhead and will have a low break-even point and profits don't increase a large amount as volume increases. A capital intensive company will have a higher break-even point but will have a greater profit as volume increases. 6) A company's debt can only be used only to a certain point and because of that financial leverage
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