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    Breakeven Analysis and Usefulness

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    "Breakeven analysis isn't very useful to a company because companies need to do more than break even to survive in the long run. Explain why you agree or disagree.

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    Solution Preview

    Breakeven analysis is very useful to a company because it helps in determining the volumes required to achieve no profit- no loss situation. It is a useful tool of management accounting. It is calculated by following formula:
    = Fixed costs/ Contribution Margin ...

    Solution Summary

    The solution discusses the usefulness of breakeven analysis in a positive viewpoint. References are included.