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By the end of this chapter, you should be able to:
➔ distinguish between contribution per unit and total contribution
➔ draw a break-even chart and calculate the break-even quantity,
profit and margin of safety
➔ calculate target prot output, target prot and target price
➔ analyze the effects of changes in price or cost on break-even quantity, profit and margin of safety, using graphical and quantitative methods
➔ examine the benefits and limitations of break-even analysis.