Cost-Volume-Profit (CVP) Analysis (20 marks)
a. Discuss the components of cost-volume-profit (CVP) analysis and their significance in managerial decision-making.
b. XYZ Company sells a product for $50 per unit, with variable costs of $30 per unit and fixed costs of $100,000. Determine the breakeven point in units and sales dollars. Analyze the company's profitability at sales levels of 10,000 units and 15,000 units, considering the contribution margin ratio.