1a. The assumptions that might be made in both incremental analysis (differential analysis) as well as in CVP. What about risk? For example, what is the likelihood you will need pet insurance or other types of insurance? What does it mean when we are talking about assumptions...are they taken into account in incremental analysis? What are some others assumptions that are made in these methods?

1b. Watch:

Amazon. (2016). Introducing Amazon Go and the world's most advanced shopping technology [YouTube Video]. InYouTube. https://www.youtube.com/watchv=NrmMk1Myrxc&feature=youtu.be

The video shows their "computer vision technology" (a fixed cost) to replace employees (variable cost) who would have to scan your products (amazon, 2016). Note that this helps improve their Contribution Margin (selling price per unit-variable cost per unit).

This is a real life example of Cost-Volume-Profit. Can anyone tell me what the graph might look like prior to adding the "computer vision technology" and what it might look like after? You can plug in sample #s.