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Revised Income Statements & The Contribution Margin Approach

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Accounting for Decision Making

The Company to use is General Motors

Time period use 2007-2008

By this time, you should have an organization selected and approved for your project.

Identify any activity in your organization where you can apply break-even analysis. You must be able to define:

A unit of measurement for the activity
Revenue per unit for the activity
Variable costs for the activity
Fixed costs for the period in the activity
If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.

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Solution Summary

Response provides report-styled guidance on the preparation of a revised income statement and concepts of the contribution margin approach. 300 words.

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The name and nature of the organization
The name of the organization is General Motors. General Motors Corp. (NYSE: GM), one of the world's largest automakers, was founded in 1908, and today manufactures cars and trucks in 34 countries. With its global headquarters in Detroit, GM employs 244,500 people in every major region of the world, and sells and services vehicles in some 140 countries. In 2008, GM sold 8.35 million cars and trucks globally under the ...

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