This document discusses cost-volume-profit (CVP) analysis for Paukovich Consulting Company. It provides the CVP formula and calculates costs, revenues, profits and break-even point for years 20X1 and 20X2. For 20X2, total costs are calculated to be $2,003,000 and the target net income is $500,000. Using the CVP formula, total revenues needed to achieve this are calculated to be $2,628,000. The degree of operating leverage is also calculated, showing the risk associated with a high proportion of fixed costs. Finally, the margin of safety is found to be 56.5%, indicating current sales would need to drop by this amount before reaching