CVP Analysis

CVP Analysis.
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 one or more of the following in a minimum of 175 words:

Explain each of the three elements of CVP analysis. Discuss how managers use CVP analysis.
Break-even analysis is of limited use to management because a company cannot survive by just breaking even. Do you agree? Explain.
How does a company s operating leverage effect its profitability?
Discuss the concepts of relevant costs and incremental costs. How do they relate? Provide examples.
In what type of business decisions can incremental analysis be used?

CVP Analysis