How does targeted profit enter into the break-even units


1. How does targeted profit enter into the break-even units equation?

2. Explain how a change in sales mix can change a company's break-even point.

3. Define the term margin of safety. Explain how it can be used as a crude measure of operating risk.

4. Explain what is meant by the term operating leverage. What impact does increased leverage have on risk?

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Finance Basics: How does targeted profit enter into the break-even units
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