International Journal of Commerce and Management Research

International Journal of Commerce and Management Research






ISSN: 2455-1627


International Journal of Commerce and Management Research
International Journal of Commerce and Management Research
Vol. 3, Issue 3 (2017)

An analysis of cost volume profit of Nestlé limited


B Navaneetha, K Punitha, Raichu Mercy Joseph, S Rashmi, T Sai Aishwariyaa

Cost volume profit analysis scrutinizes the relationship between changes in activity and changes in total sales revenue, cost and profit. It may provide very useful information particularly for a business that is commencing operations or facing difficult economic conditions. Cost volume profit analysis determines how many units of a product must be sold so that the business reaches its break-even point. It allows the business to consider the effect on profits of various changes in operating costs and revenues such as a reduction in selling price or an increase in fixed cost to determine the sales volume required to achieve a specific profit level and to establish the amount by which the current sales level can decrease before losses are incurred.
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