Prompt: For this milestone, submit a draft of the cost-volume-profit analysis (Section I of the final project), including all of the critical elements listed below. Refer to the Hampshire Company Case Study document, as this provides details on how to complete this milestone. All calculations for your quantitative analysis should be completed in the Hampshire Company Spreadsheet. You will provide a rough draft of your qualitative analysis in a Word document. Once you have completed your analysis, submit your Word and Excel documents.

Specifically, the following critical elements must be addressed:

Cost-Volume-Profit Analysis

Cost-volume-profit (CVP) analysis is a useful tool for informing short-term economic planning within an organization. In this section, a CVP analysis will be conducted and used to inform business decisions and recommendations.

A. Perform a CVP analysis based on cost classifications.

B. Explain how a CVP analysis can assist management with short-term economic planning. Support your response with examples from your CVP analysis.

C. Accurately compute the break-even quantity and break-even revenue.

D. Determine whether the company is breaking even. What are the CVP analysis implications on planning?