AProvide Two Different Ways of Computing Breakeven Units: One with the Contribution

question 153

Essay

a.Provide two different ways of computing breakeven units: one with the contribution margin in the computation and one without the contribution margin.
b.Compare and contrast the two different methods of computing breakeven units.Does the use of the contribution margin alter the resulting number of breakeven units? Why or why not?
c.Comment on how the contribution margin affects the computation of breakeven units.Would an increase in the contribution margin increase or decrease the number of breakeven units required?

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Definitions:

Embryo

An early stage of development in multicellular organisms, in humans, it refers to the period from fertilization until the eighth week of pregnancy.

Fetus

A fetus is the term for an unborn offspring from the eighth week after fertilization until birth, characterized by rapid growth and development of bodily structures.

Diethylstilbestrol

A synthetic estrogen once prescribed to prevent miscarriages and pregnancy complications but later found to cause cancer and other severe health issues.

Estrogen

A female sex hormone produced mainly by the ovaries.