Cost Volume Profit Analysis - Sensitivity Analysis

The video tutorial explains cost volume profit analysis, focusing on how changes in cost or production volume affect profitability. It introduces the break even point as a key formula, detailing how to calculate it using fixed costs and contribution margin. The tutorial also covers sensitivity analysis, which helps assess the impact of variable changes on profitability. Additionally, it explains the concept of contribution margin and its ratio, and briefly mentions regression analysis as an alternative method.

Explain how sensitivity analysis is used in cost volume profit analysis.

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What factors can affect the profitability in cost volume profit analysis?

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