how is cost volume profit cvp analysis used 
cost volume profit analysis is used to determine whether there is an economic justification for a product to be manufactured a target profit margin is added to the breakeven sales volume which is the number of units that need to be sold in order to cover the costs required to make the product and arrive at the target sales volume needed to generate the desired profit the decision maker could then compare the product s sales projections to the target sales volume to see if it is worth manufacturing 