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In this discussion, we gain a deeper understanding of cost-volume-profit analysis or CVP. Discuss the rationale for using CVP in manufacturing, service, and not-for-profit companies.

In this discussion, we gain a deeper understanding of cost-volume-profit analysis or CVP. Discuss the rationale for using CVP in manufacturing, service, and not-for-profit companies. Explain how break-even analysis and contribution margin help managers make decisions about how much of a product to produce. As the vice president of a production department, discuss ways to manage production volumes and the performance measures you might implement to ensure managers of production do not over-produce or produce quantities that cannot be sold.

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