You can use the profit volume and break-even analysis starter workbook for testing the sensitivity of your costs and profits to changes in revenues and for calculating your break-even point. However, you probably want to change the workbook so that it more closely matches your requirements. For … [Read more...] about Customizing the Profit Volume Starter Workbook

# break even analysis

## Understanding the Profit Volume Analysis Starter Workbook’s Calculations

The profit volume and break-even analysis starter workbook has six parts: the Profit Vol- ume Inputs box and the Break-Even Analysis Forecast (shown in Figure 11-1), the Profit Volume Forecast (shown in Figure 11-2), the Common Size Profit Volume Forecast (shown in Figure 11-3), and the Profit … [Read more...] about Understanding the Profit Volume Analysis Starter Workbook’s Calculations

## Using the Profit Volume and Break-Even Analysis Starter Workbook

You can use the profit volume and break-even analysis starter workbook (PROFITVOL), shown in Figures 11-1 through 11-4, to test the effect of changing revenues on business profits. To complete the schedule, you define the following: Revenue variables, including the unit sales price, the low … [Read more...] about Using the Profit Volume and Break-Even Analysis Starter Workbook

## Easy Refresher: Profit Volume and Break-Even Analysis

Profit volume analysis, sometimes called cost-profit-volume analysis, is the process of calcu- lating the profits of a business at different volumes, or revenue levels. Break-even analysis, a component of profit volume analysis, is simply the calculation of the revenue level at which a business … [Read more...] about Easy Refresher: Profit Volume and Break-Even Analysis

## Calculating a Business’s Break-Even Points

Break-even analysis allows you to determine the business revenue necessary to pay all your expenses. Break-even analysis is a simple and powerful financial-management technique related to business profits. At the break-even point, a business doesn’t make any money, but it also doesn’t lose any … [Read more...] about Calculating a Business’s Break-Even Points