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name a strategy to use to complete a cost-volume-profit analysis. Explain your answer!

name a strategy to use to complete a cost-volume-profit analysis. Explain your answer!

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Answer #1

In variable cost-plus pricing strategy a cost-volume-profit analysis used. In variable costing method fixed costs are considered as periodic cost.

In such method of costing fixed cost should be constant at desired production level. Required contribution margin is calculated to cover fixed cost and desired profit at desired production level.  

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