Prezi uses CVP to implement multiple product pricing plans. Explain how Prezi$$s process works and how prevalent CVP methodologies are in usage for pricing multiple product lines.

Prezi prepared the following contribution format income statement based on a sales volume of $2,000$ units $($the relevant range of production is $500$ units to $1,500$ units$)$ of Product Line #$2.$

Sales$$ $$20,000$

Variable Expenses$12,000$

Contribution Margin$8,000$

Fixed Expenses$6,000$

Net Operating Income$$ $ $2,000$

One member of Prezi$$s board $($Mr$.$ Adrian$)$ has challenged the fixed expenses.$$ Mr$.$ Adrian says $$There is no such thing as fixed costs.$$ All costs change over the long term.$$ Is this a true statement?$$ How would you respond to this comment from a board member?$$

Prezi in the Entrepreneur Spotlight states Prezi is organized as a private equity company.$$ Why do you suppose Peter Arvai funded this venture with private equity?$$ How prevalent are companies funded as private equity companies?

In order to formulate your recommendation, you may want to carefully consider the problem, the three $(3)$ CVP assumptions, collect relevant data and information, critically evaluate the alternatives, and document your recommendations using sound arguments that are well supported, properly vetted, and logically presented.

Submission Requirements$$

This report should: