Break Even Analysis Model
€60.00
Managers must make decisions about sales volume, pricing and costs and are concerned about the impact of their decisions on profit. Therefore, they need to understand the relations among revenues, costs, volume and profit. Cost-volume-profit, or CVP, analysis provides managers with information for decision making.
What is CVP?
CVP analysis explores the relationship between sales revenue, cost and their effect on profits. Also known as Break-even analysis.
Key Model Outputs
Contribution margin
Contribution margin ratio
Break-even point
Target profit
Margin of safety
Operating Leverage
Break Even Chart
Multiproduct Analysis
