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 amethodical analysi

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 amethodical analysisof the dynamic inter-relationship between selling prices, sales and production volume, costexpenses, and profits.

Respond to the following in a minimum of 175 words:

  • Explain each of the three elementsofCVP analysis.
  • Discuss how managers useCVP analysis.