Basic purpose of this assignment is to analysis Cost Volume Profit (CVP). Cost Volume Profit Analysis, in managerial economics is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run. CVP analysis expands the use of information provided by break-even analysis. It is necessary for make decisions about the types and volumes of products to manufacture. Key calculations when using CVP analysis are the contribution margin and the contribution margin ratio.