The components of cost-volume-profit (CVP) analysis

1. What are the components of cost-volume-profit (CVP) analysis? (80 words) 2. How does a CVP income statement help management make decisions? (80 words) 3. How does a company’s operating leverage effect its profitability? ((80 words) 4. In what type of business decisions can incremental analysis be used? (80 words) 5. Why is it important for a manager to understand break-even or cost-volume-profit analysis?(80 words) 6. In what types of situations is incremental analysis most useful?(80 words)




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