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CVP analysis is a way to find out how changes in variable and fixed costs affect firm's profitability. Companies can use CVP to determine how

CVP analysis is a way to find out how changes in variable and fixed costs affect firm's profitability. Companies can use CVP to determine how many units they need to sell to break even (cover all costs) or reach a certain minimum profit margin. To be able to do that, companies makes certain assumptions when applying the CVP analysis.\ Required\ Discuss whether assumptions underpinning CVP analysis are relevant

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