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1. Which ROI technique provides an answer in number of units that must be sold?
Internal Rate of Return.
2. Under what conditions should you not use the Breakeven Point ROI technique?
The Breakeven Point should not be used when the size of the market is not known.
The Breakeven Point should not be used if the project impacts the variable cost (COGS).
Breakeven Point should not be used when there is a large component of ongoing operating expense or benefit (beyond the project cost).
3. What is the basic formula of the Breakeven Point technique?
Gross Profit – Operating Expense = 0.
Earned Value – Actual Cost = 0.
Revenue – Expenses = Net Income.
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