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This research intends to know the importance of Cost-Volume-Profit Analysis in p

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This research intends to know the importance of Cost-Volume-Profit Analysis in planning and making decisions in the business environment. The research was done on a small and newly start-up cake shop. The data are realized through a series of interviews with the participant. The contribution Income Statement is illustrated and the break-even point is also determined. The result of this research showed that the number of units produced and sold positively affects the raising profit of a manufacturing entity. It also showed the important relationship between production and sales and how CVP analysis contributes to growth profitability and determination of break-even in the business. Based on the result, it is therefore concluded that CVP analysis should be considered prior making decisions as it also lessens the risk of loss to the business entity.

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