Expense profit volume or CVP analysis is a tool to check the compatibility of your sales volume, sales price, cost structure and profitability are management decisions, such as marketing, finance, and production. In addition, analysis of the impact assessment of alternative products, pricing strategy. They also claim that it is important that the CVP ascriptions to be sold as soon as the linear combination of expense and some in the Organization, the item is not changed. CVP analysis are monitoring changes of total sales revenue, expense and profit relationships, and suggested that a variable can remain constant and are not included in the cost section, add a variable that is used in the calculation of profits. The format of the CVP is the net income = gross income-total expenses. In addition, some equations that are used in this analysis, such as the contribution per unit = sales price per unit-variable costs per unit.
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