Finance/Accounting : Cost-Volume-Profit 9 What is
the basic C-V-P equation? What is a more detailed version of this equation?

10 What is the contribution margin, and why is it important
for managers to know the contribution margins of their products?

11 How much
will profits increase for every unit sold over the break-even point?

12 What is
the major advantage of using C-V-P graphs?

13 When other
factors are constant, what is the effect on profits of an increase in fixed
costs? Of a decrease in variable costs?

14 What are
the limiting assumptions of C-V-P analysis?

keywords: cost, volume, profit

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