Cost-volume-profit analysis can be used to compute expected income from predicted sales and cost levels.

Question

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Cost-volume-profit (CVP) analysis is a useful tool for businesses to forecast their expected income based on predicted sales and cost levels. Using CVP analysis, managers can determine the break-even point for their business, evaluate different pricing strategies, and assess the impact of changes in variable costs on profitability.

Cost-Volume-Profit Analysis Can Be Used to Compute Expected Income from Predicted