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One useful technique for evaluating alternative choices is break-even analysis; that is what quantity of goods or services would have to be produced in order to pay for the costs of each alternative. Generally, the choice with the lower breakeven quantity is a less risky and better choice.
Upon successful completion of this assignment, you will be able to:
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- Develop research and data analytical skills for use in solving business problems.
- Read chapters 1, 2, 3, 4, and 5 in the online textbook from OCLS, Break-Even Analysis: The Definitive Guide to Cost-Volume-Profit Analysis.
- Review the file title Linear Equations and complete the eight questions at the end of the file. Be sure to show your work. You may do the work in excel but be sure your answers are clearly highlighted and that the formulas work within the excel document.