The advantages of CVP analysis for business managers are as follows (ICSI, 2017: 326):

• It determines the lowest amount of production that will prevent the business to make a loss. 
• It determines the unit cost and the working capital needed in various amounts of production.
• It evaluates the implemented managerial policies by comparing the planned and the actual breakeven point.
• It helps to choose the most profitable production types and helps to generate product mix.
• It determines the lowest sale price of production.
• It determines the necessary activity volume to achieve profit targets.
• It determines the effects of the products, their selling prices, their costs and the changes in demand on profit.
• It determines the activity volume that will meet the new investments. 
• It helps the decisions on products to be produced, investments to be made and the sales prices of the products.
• It determines the sales price that will meet the rise in activity volume.