Marshall companys gwhiz calculator sells for 40 variable


1. Faye Dunn defines contribution margin as the amount of profit available to cover operating expenses. Is there any truth in this definition? Discuss.

2. Marshall Company's GWhiz calculator sells for $40. Variable costs per unit are estimated to be $26. What are the contribution margin per unit and the contribution margin ratio?

3. "Break-even analysis is of limited use to management because a company cannot survive by just breaking even." Do you agree? Explain.

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