Read the following scenario and then thoughtfully discuss thequestions. In a recent news report,...

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Accounting

Read the following scenario and then thoughtfully discuss thequestions. In a recent news report, the following statement wasmade: "A report put out by brokerage house CLSA about Jet Airwayssaid that the fall in ATF (fuel) prices has brought down the loadfactors (flight occupancy) required for the airlines to break evenfrom 78 percent to 63 percent." The load factor is the percentageof available seats on a flight that are occupied.
What are some important assumptions commonly made in CVPanalysis? What significant assumptions and limitations should beconsidered when using this piece of information? Do theseassumptions impose serious limitations on the analysis? Why or whynot?

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Answer i Costvolumeprofit CVP analysis alludes to the investigation of the impacts of changes in costs and volume on the profits of the organizationCostVolumeProfitCVP analysis depends on the interdependency of five parts which are sales cost per unit volume sold fixed costs variable expenses per unit and operating income It shows the connection between the unit variable cost fixed cost selling costs and quantity of sales The See Answer

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In: AccountingRead the following scenario and then thoughtfully discuss thequestions. In a recent news report, the...Read the following scenario and then thoughtfully discuss thequestions. In a recent news report, the following statement wasmade: "A report put out by brokerage house CLSA about Jet Airwayssaid that the fall in ATF (fuel) prices has brought down the loadfactors (flight occupancy) required for the airlines to break evenfrom 78 percent to 63 percent." The load factor is the percentageof available seats on a flight that are occupied.What are some important assumptions commonly made in CVPanalysis? What significant assumptions and limitations should beconsidered when using this piece of information? Do theseassumptions impose serious limitations on the analysis? Why or whynot?