Cost Volume Profit

A retailer wants to put items on sale and wants to know the impact on profit if the selling price of those items are reduced by 25%. To assist the retailer, provide a detailed example of CVP analysis based on what you learned this week using the original sales price and then do a “what if“ analysis if the retailer sold 100 more items at the lower price. Do you think your analysis would show the same impact on profit for both the company’s online and brick and mortar stores keeping in mind the idea of variable and fixed costs? Why or why not?

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