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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 Preview

    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 ...

    Solution Summary

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