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Discuss how managers use cvp analysis

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Reference no: EM132576863

Cost-volume-profit analysis, or CVP, is something companies use to figure out how changes in costs and volume affect their operating expenses and net income.?In other words, CVP is a methodical analysis of the dynamic inter-relationship between?selling?prices, sales and production volume, cost expenses, and profits.

Respond to the following:

Question 1: Explain each of the three elements of CVP analysis.

Question 2: Discuss how managers use CVP analysis.

Reference no: EM132576863

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