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The Essentials of Finance and Accounting for Nonfinancial Managers, 2nd Edition by Edward FIELDS

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CHAPTER NINEAnalysis of BusinessProfitability

The discussion in this chapter will focus on the factors that determine the profitability of individual products and help us to improve the decisions that we make concerning these products. We will measure and evaluate the factors that determine the profitability of a product, including:

image Product price

image Unit volume sold

image Costs, both fixed and variable

Profitability

The financial tool used to achieve these ...

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