How cost-volume-profit analysis can assist the business management in planning and making strategic decision in its effort to increase profit?

In order to increase profit, you need to know exactly what your costs/expenditures and income ratio is. Management can not make strategic decisions that will increase cash-flow without having solid numbers to compare against the bottom line and desired profit margin. I recommend using a tool like TARI because it allows you to input all statistics relevant to your business, including both your actual and desired profit, then generates a report that clearly indicates your problem areas and the aspects of your business you should consider if you want to increase productivity, profit, and cash flow. You can read more about this kind of tool here: www.improvebusinessprofit.com. Hope that helps.