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Cost-volume-profit (CVP) analysis is a powerful tool for planning and decision making. Thus, CVP analysis emphasized the interrelationships of costs, quantity sold, and price. This analysis is defined as assessment of total revenues, total costs and operating income in response to changes in the volume of sales, the selling price, variable cost or fixed costs of production. The CVP analysis can be a valuable tool in identifying the extent and magnitude of the economic trouble a company is facing and helping pinpoint the necessary solution. Breakeven is a critical concept to CVP analysis
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Problem 1: You are required to discuss the above statement by answering why multiple products may cause problems in CVP justification and how this problem could be solved. [Hints: refer to journal articles to support your argument]
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