A cost-volume-profit (CVP) analysis models short-term profit (πB) as a function of all of the following variables except:

Name: A cost-volume-profit (CVP) analysis models short-term profit (πB) as a function of all of the following variables except:
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Gross margin is not a variable that is directly related to short-term profit in a CVP analysis. The other variables (variable costs, fixed costs, output level, and sales volume) are all key components of the analysis.

A Cost-Volume-Profit (CVP) Analysis Models Short-Term Profit (πB) as a Function