Question 1:
Shown below is a typical cost-volume-profit chart:
Required:
i.) Explain to a colleague who is not an accountant the reasons for the change in result on this cost-volume-profit chart from a loss at a point (a) to a profit at point (b).
ii. Identity and critically examine the underlying assumptions of this type cost-volume-profit analysis and consider whether such analyses are useful the management of an organisation.
