Mathematics, 21.03.2020 12:06 DD8156

In accounting, cost-volume-profit analysis is a useful tool to help managers predict how profit will be affected by changes in prices or sales volume.
Net income, NININ, I, is calculated using the formula NI = (SP-VC)(V)-FCNI=(SP−VC)(V)−FCN, I, equals, left parenthesis, S, P, minus, V, C, right parenthesis, left parenthesis, V, right parenthesis, minus, F, C, where SPSPS, P is the sales price, VCVCV, C is the variable cost per unit, VVV is the sales volume, and FCFCF, C are fixed costs.

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In accounting, cost-volume-profit analysis is a useful tool to help managers predict how profit will...