Cost-volume-profit (CVP) analysis looks at the impact that varying levels of sales and product costs have on operating profit. Hence the benefit is:
- focusing on what the customer likes about the product
Uses of CVP
- It is used to determine whether there is an economic justification for a product to be manufactured.
- A target profit margin is added to the break-even sales volume, which is the number of units that need to be sold in order to cover the costs required to make the product, to arrive at the target sales volume needed to generate the desired profit.
Therefore, the correct answer is as given above.
learn more about CVP from here: https://brainly.com/question/26411668
