A Case of Variable and Fixed Costs - Assessing Contribution and Breakeven Points

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The writer looks at the difference between labor and fixed costs, and how variable costs can be used to determine the level of contribution for any product. The writer then demonstrates the calculation of the breakeven point. In order to demonstrate the way in which these calculations can take place is demonstrated with the use of a simple fast food product; french fries. Three sources are cited in the bibliography of this four page paper.