“The effect of a price increase is always to increase the P/V ratio, to bring down the break-even point and to widen the margin of safety.” Discuss. The “volume-cost-profit relationships provide...

“The effect of a price increase is always to increase the P/V ratio, to bring down the break-even point and to widen the margin of safety.” Discuss. The “volume-cost-profit relationships provide management with a simplified framework for organising its thinking on a number of problems.” Discuss.