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Cost-volume-profit analysis, or CVP, is something companies use to figure out how changes in costs and volume affect their operating expenses and net income. In other words, CVP is a methodical analysis of the dynamic inter-relationship between selling prices, sales and production volume, cost expenses, and profits. 

Respond to the following in a minimum of 150 words: 

  • Explain each of the three elements of CVP analysis. 
  • Discuss how managers use CVP analysis. 

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