â?¢What are the features of cost-volume profit (CVP) analysis.
â?¢Why are managers interested in the break-even analysis point?
â?¢Compare contribution margin and fixed costs.
1. cost-volume profit:is used to decide how changes in costs, volume, and profits affect a company's business decision. In performing this analysis, 5 interactions should be made, including:
- Price per item is constant
- Volume of activities will affect the costs
- per unit variable cost is constant
- Total fixed ...