1. A cost-volume-profit graph is frequently used in business meetings because it presents a picture of cost relationships within a company. Briefly describe the type of information and data that you would need in order to make CVP graph. After a CVP graph is prepared, what are the major points that could be made from the graph that would be of interest to management?

2. How should mixed costs be classified in CVP analysis? What approach is used to effect the appropriate classification? Is there anything we can do to break down between Fixed and Variable?