ECONOMICS

Detailed explanation-1: -c. Total fixed costs. Therefore, the factor not involved in CVP model is letter e., Actual sales volume.

Detailed explanation-2: -CVP analysis makes several assumptions, including that the sales price, fixed and variable costs per unit are constant. Running a CVP analysis involves using several equations for price, cost, and other variables, which it then plots out on an economic graph.

Detailed explanation-3: -The point of a CVP analysis is to determine how changes in variable and fixed costs will affect profits. What are the three elements of cost-volume-profit analysis? The three main elements are cost, sales volume and price. A CVP analysis looks at how these elements influence profit.

Detailed explanation-4: -CVP analysis looks at the effect of sales volume variations on costs and operating profit. The analysis is based on the classification of expenses as variable (expenses that vary in direct proportion to sales volume) or fixed (expenses that remain unchanged over the long term, irrespective of the sales volume).