500 word finance paper | Business & Finance homework help
A Cost-Volume-Profit (CVP) analysis is a tool used to analyze the impact of varying levels of costs, sales volume, and profits on a business. It can be used to determine how changes in revenue and cost affect profitability. For example, it can help inform decisions about whether or not an investment is worth making by looking at the expected break even point for the project and estimating what level of sales must be achieved in order to make a profit. Additionally, CVP analysis can also help identify potential areas where costs could be reduced in order to increase profits.