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rd 6.25 te Cash breakeven analysis O is important when analyzing long-term profitability. O None of these. O is helpful in an
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Answer #1

The correct option is C.

Cash break-even point examine the short-term financial position of the company. It shows the the units that needed to be sold to cover atleast the cash fixed cost. It does not includes depreciation expenses as a fixed cost while calculating the degree of financial leverage.

Thus, cash break-even analysis is helpful in analyzing the short-term outlook of the firm, particularly when it is in trouble financially.

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