In a few brief phrases, explain how ABC affects cost-volume-profit analysis.
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In a few brief phrases, explain how ABC affects cost-volume-profit analysis.
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- Of the five competitive forces presented in the chapter (Porter's model), which is the most significant for an organization in terms of making 19 investment deci-sions? Why? Which is the least significant? Why?Southland Corporation's decision to produce a new line of recreational products resulted in the need to construct either a small plant or a large plant. The best selection of plant size depends on how the marketplace reacts to the new product line. To conduct an analysis, marketing management has decided to view the possible long run-demand as low, medium or high. The following table shows the projected profit in millions of dollars: Plant Size Low Medium High Small 150 200 200 Large 50 200 500 a. What is the decision to be made, and what is the chance event for Southland's problem? b. Construct a decision tree. c. Recommend a decision based on use of the optimistic, conservative, and minimax regret approaches.To what end can a balanced scorecard contribute to optimizing return on investment?