In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company's product and operations.

• Explain how the lines on the graph and the break-even point would change if (a) the selling price per unit decreased, (b) the fixed cost increased across the entire range of activity portrayed on the graph, and (c) the variable cost per unit increased.
• From a strategic management perspective, discuss the primary reasons a firm would perform a CVP analysis.