The Cell Inc., a microbiology research laboratory headquartered in the United States, has been losing money. The CEO decides to
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Answer: The answer is provided and attached below.
Explanation:
The explanation for number 1 and 3 has been attached.
2. The break even point is level of production whereby a company makes no profit or loss. When a company operates below the break even point, the company makes a loss and when a company operates above this level, the company make a profit. The higher the level, the higher the profit.
Therefore, from a cost point of view, Miller restaurant and every other company wants to operate at the full or near full capacity in order to earn higher level of profit. At this point, the fixed costs have been recovered, and every additional unit makes up the profit of the company.
