With the continuous development of social and economic system and the increasing market competitiveness, the problem of how to improve profits is becoming more and more serious for enterprises. Cost volume profit analysis plays an increasingly important role in enterprise management. Cost volume profit, as a way of enterprise management, can help enterprises to understand the safety situation of production and operation, grasp the influence degree of each factor change on enterprise profit, analyze the feasible methods and measures to achieve the target profit and the breakeven amount of the critical profit and loss point, recognize the possible risk factors in enterprise management, and then find an effective way to make enterprise decision makers. Avoiding risks and achieving the maximum profit with the minimum cost play a great role in the decision-making and operation of an enterprise. It is beneficial for an enterprise to adjust its production structure and target sales volume in a timely manner, rather than blindly thinking that the more sales, the better, reasonably control its operation activities, carry out a comprehensive budget, maximize its profits and make short-term decisions for its leaders. The decision-making of production and operation and pricing is of great significance.
