Cost-volume-profit analysis

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For your Unit 4 Complete assignment, write a narrative essay (minimum 1500 words) in which you address and discuss the questions and statements listed below. Use at least four scholarly sources and remember to demonstrate a thorough understanding of the READ and ATTEND sections in your essay. Cite your sources in APA format.

Cost-volume-profit analysis is used to make many decisions, including product pricing and controlling costs. What assumptions are used in cost-volume-profit analysis? Are these assumptions always valid? Why do managers put such a great amount of emphasis on controlling fixed costs in their organizations? What is meant by the statement, my company has good operating leverage? How does good operating leverage magnify earnings results with modest revenue increase? What are the limitations of using operating leverage to predict profitability? Be sure to use at least four sources and use APA format.

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