Prepare a report in which you:
- Explain the value of preparing a contribution income statement.
- Describe the concept of sensitivity analysis and explain the value of applying it during any budgeting process.
- Define operating leverage and explain how analysis of operating leverage alternatives would be applied to this decision.
- Describe strategic reasons why the company should bring printing and binding of their magazine in house.
- Describe strategic reasons for not bringing printing and binding of their magazine in house.
- Illustrate application of the five steps of strategic decision making for CVP analysis to this decision scenario.
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