Discussion Board Instructions Summarized: The initial discussion board post will need to be a minimum of 100 words

    In a cost-volume-profit analysis (CVP analysis), you can examine the impact on a company's profts. By looking at changes in the selling price, variable and fixed costs or how much is being sold, you can find the break-even point. The break-even point is where the company is not losing money and the company is not making money.

                  A company exists to make profits. Operating and managing a company at the break-even point will produce no proft, since it's at that point. They're not losing money either. When a company figures out their break-even point, all they're finding is how many units or sales do they need to sell in order for their operating income(profit) to equal zero, so a company would not want to remain at this break-even point, because they wouldn't be making any profit.

               When the company reduces fixed costs (FC), the break-even point lowers. This is because having less fixed costs(FC) will equal to less sales needed to cover those costs. If your fixed costs are less, you don't need to sell as many units, and it will lower the break-even point. 

            Knowing the break-even point will help you figure out where you can increase or decrease in order to stay afloat. You can increase the selling price(SP) of your product, and in turn increase your Contribution Margin (CM), but you'll have to watch out because an increased selling price might result in less sales since it's more expensive. Knowing this, as a managerial accountant, you can report exactly where the compnay can improve and how it can run more efficiently.