Discuss the concept of CVP Analysis. Describe the difference between CVP Analysis and Breakeven Analysis. 

CVP analysis expands the use of information provided by break-even analysis. A critical part of CVP analysis is the point where total revenues equal total costs (both fixed and variable costs). At this break-even point, a company will experience no income or loss. This break-even point can be an initial examination that precedes more detailed CVP analysis.

CVP analysis employs the same basic assumptions as in breakeven analysis. The assumptions underlying CVP analysis are:

• The behavior of both costs and revenues is linear throughout the ________ ______ ____ ____ _______ ____.
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