how does cost-volume-profit (CVP) analysis and flexible budgeting can enable students to understand the different stages involved in starting up a business, projecting out results, and monitoring business performance based on the article: A Case Method Approach of Teaching How Cost-Volume-Profit Analysis is connected to the Flexible Budgeting Process and Variance Analysis

Including how CVP analysis directly ties into the planning and control processes management must take to start a potentially successful business.

link: http://digitalcommons.www.na-businesspress.com/JAF/MachugaS_Web13_6_.pdf

Can you explain why relatively small changes in companies' revenues can result in relatively large changes in their earnings or losses. In other words, if a company's sales increase 12%, why do its earnings not also increase 12%?

Based on these articles:

Operating Leverage

Link: https://www.accountingtools.com/articles/2017/5/13/operating-leverage

Investors Take Flight After Angry Birds Maket Warns on Profit:

Link https://www.reuters.com/article/us-rovio-results/investors-take-flight-after-angry-birds-maker-warns-on-profit-idUSKCN1G60OB