## cvp analysis focuses on how profits are affected by **__**.

CVP analysis focuses on how profits are affected by following five factors namely

- 1. selling price,
- 2. Sales Volume,
- 3. unit variable cost,
- 4. total fixed costs ,
- 5. mix of products sold.

### Explanation: cvp analysis focuses on how profits are affected by

Cost-Volume-Profit (CVP) Analysis: What Is It?

A cost accounting technique called cost-volume-profit (CVP) analysis examines the effects that different cost and volume levels have on operational profit.

An approach to determining how changes in variable and fixed expenses impact a company’s profit is through cost-volume-profit (CVP) analysis.

Companies can utilize CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).

CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.