fast & simple questions on CVP analysis!
Please answer the following questions in 1-2 paragraphs. Keep it short, simple and straight to the point :
- If a restaurant wasn't able to break even, but came close, how could they try to improve sales?
- Cost-volume-profit (CVP) is conducted using both a formula-based mathematical approach and a graphic approach. It is applied to single-product companies. CVP analysis can be applied to companies that sell more than one product, as long as their sales mix is constant. Can you identify examples of sales mixes for various real-life businesses.
- Do you think CVP analysis helps managers understand the relationship between volume, cost and profit?
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