CVP graphs can help managers quickly estimate the profit or loss earned at different levels of sales volume.

Question

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CVP graphs (also known as break-even analysis) are useful tools for managers to estimate profitability at different levels of sales volume. These graphs show the relationship between sales volume, costs, and profits (or losses) and can be used to make decisions about pricing, production, and sales strategies.

CVP Graphs Can Help Managers Quickly Estimate the Profit or Loss