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o Explain the components of cost-volume-profit analysis. o What does each of the components mean?

o Explain the components of cost-volume-profit analysis.

o What does each of the components mean?

o Based on the formulas you have reviewed, what happens to contribution margin per unit when unit selling prices increase? Illustrate your explanation with an example from a fictitious company of how an increase in unit selling prices might affect contribution margin.

o When fixed costs decrease, what does this do for sales? Illustrate your explanation with an example from a fictitious company.

o Define contribution ratios.

o What happens to contribution ratios as one of the components changes?

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Explain the components of cost-volume-profit analysis and what does each component mean:
Answer:
Cost-Volume Profit analysis is a technique that examines changes in profits in response to
changes...

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