TY  - JOUR
T1  - Evaluation of the Effect of Cost Volume Profit on the Profitability of Manufacturing Firms
in Enugu State Nigeria
AU - J. Agah, John AU - C. Ebe, Emmanuel AU - O. Ede, Moses AU - N. Onyeka, Virginia AU - C. Aleke, Jeremiah AU - C. Amauchechukwu, Ugo AU - N. Ogba, Francisca 
JO  - Journal of Engineering and Applied Sciences
VL  - 15
IS  - 10
SP  - 2199
EP  - 2211
PY  - 2020
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2020.2199.2211
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2020.2199.2211
KW  - Effect
KW  -profit
KW  -profitability
KW  -manufacturing
KW  -OLS
KW  -tool
AB  - This study sought to evaluate the effect of cost
volume profit on the profitability of manufacturing firms
in Enugu state. The specific objectives of the study were
to examine the effect of cost volume profit analysis on
profitability, cost of production and sales of
manufacturing firms. The study adopted the ex-post facto
research design and data were obtained from the annual
reports and accounts of two manufacturing firms for the
period 2003-2012. The Ordinary Least Squares
Regression (OLS) were used to test the hypotheses stated.
The result emanating from the hypotheses tested were
mixed for sampled firms (Innoson Industrial and
Technical Company and Emenite Ltd. It was revealed that
while contribution margin ratio had positive and
significant effect on profitability it had positive and
non-significant effect on cost of production and sales. The
implication of these findings is that CVP application
among manufacturing firms in Nigeria varies and this
cloud be as a result of lack of awareness, low education
levels and technical knowhow on the parts of directors.
The study therefore concludes that as an analytical tool,
it is useful as it enables the firm to determine the quantum
of sales that will assist the firm not only to make profit
but to break-even. The research therefore recommended
that relevant directors should be sent on in-services
training and short term courses on CVP application
technique. Moreover, government should put a standard
that would guide CVP application on manufacturing
firms, so as to curtail price fluctuation’s among them in
Nigeria business environments.
ER  -