Cost Volume Profit analysis is a powerful tool that companies can use in several different ways to address many different issues. Many companies use the Cost profit analysis to address their break-even point. These can include but are not limited to the number of units that must be sold to break even, the impact of a given reduction in fixed costs on the break-even point, and the impact of an increase in price on profit. Companies will use the Cost Volume Profit analysis and convert it into a graph. This graph is a critical tool that Managers can use to understand not only their break-even points but also the total revenue, profit region, and total cost. However, the example I have given is in perfect-world scenarios. Managers assess the risk and uncertainty and the what-if scenarios. In those moments, managers use Sensitivity Analysis, which is a "what-if" technique used to assess the impact of a change in an underlying variable on the product or company margins. A real-life example that I had is very similar to the example found in the text. I had a monthly membership for a kickboxing gym. I got hurt and started limiting my attendance to one or twice a week, and it was $100 a month membership. After realizing that I was not maximizing my money by not going as much as I could, I decided to cancel that membership. I was able to find a new gym that was half the price for my wife and I. I know that's a very basic example, but without getting into all kinds of numbers and formulas, that is the same as a cost volume Profit analysis. However, it is in terms of Cost (attendance) (gain). With that information, I was able to realize I was spending more money than I was gaining in health benefits.