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:

Genes

Units of heredity made up of DNA that determine characteristics of living organisms.

Nature-Nurture Issue

A debate concerning the relative importance of an individual's innate qualities ("nature") versus personal experiences ("nurture") in determining or causing differences in physical and behavioral traits.

Psychological Traits

Enduring characteristics or behaviors that define an individual's personality.

Physical Traits

Observable characteristics of an organism, such as hair color, body shape, and other features determined by genes.