Cost Volume Profit $($CVP$)$ Analysis

Profit analysis is an integral part of managerial accounting. Cost$-$Volume$-$Profit $($CVP$)$ analysis allows managers to estimate

the impacts of different costs, volume and pricing assumptions on an organization's operating results. This information is critical

to business owners or decision$-$makers as they consider making changes to existing products or services or adding new ones.

This assignment tests your understanding of how volumes impacts costs and profits, and you will utilize the CVP techniques to complete.

The "Lucy & Lincoln Dog Salon" has the following information regarding revenues and costs:

D$.$ Assume the Lucy & Lincoln Dog Salon owner has proposed an advertising campaign in the hopes of increasing more dog

grooming appointments, and it will cost $$60,000($fixed costs$).$ The owner approximates that the campaign will generate

an increase of an additioanl $500$ grooming appointments. Would you advise the dog salon owner to move forward with the

advertising campaign? Why or why not and provide calulations to support your conclusion?

All questions are in the pictures uploaded