Lo 3.3explain how a manager can use cvp analysis to make decisions regarding changes in operations or pricing structure.

Manager can use CVP analysis to determine the break-even point, margin of safety, contribution per unit, level of sales to achieve a desired profit and the selling price at which a firm begins to make profit. CVP helps managers  to analyse costs with a view to ensuring profitable operations.                                                                                                                                                                                                                                                        

Explanation:

Break-even point is the point at which total cost equals total revenue.

Margin of safety measures the level of reduction in sales before a firm starts experiencing loss.

Contribution per unit is the difference between selling price and unit variable cost.

CVP  analysis helps to measure the relationship among cost, volume and profit.

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