Question

CVP analysis focuses on how profits are affected by Blank______.



Multiple select question.

mix of products sold


selling price


unit variable cost


sales volume


break-even point


total fixed costs

Answer 1

CVP (Cost-Volume-Profit) analysis focuses on how profits are affected by the following factors:

1. **Mix of products sold** - Different products may have different contribution margins, affecting overall profitability.
2. **Selling price** - Changes in selling price directly impact revenue and profit.
3. **Unit variable cost** - Variable costs per unit affect the contribution margin and, consequently, profitability.
4. **Sales volume** - The quantity of units sold is a key driver of revenue and, thus, profit.
5. **Break-even point** - This is the sales volume at which total revenue equals total costs, which is essential for understanding profit dynamics.
6. **Total fixed costs** - Fixed costs determine the baseline level of expenses that must be covered before profits are realized.

So, all of the options listed are relevant to CVP analysis.