Breakeven Analysis

This book explains the vocabulary of cost-volume-profit (breakeven) analysis (CVP), explores the breadth of applications of CVP, and illustrates the use of CVP concepts in a broad range of management and marketing scenarios. The book examines the proper identification of a “unit”, the various formulations of breakeven, profit planning using the breakeven formulas, and the application of CVP in sensitivity analysis.

Each chapter will offer several important ingredients for a practical “how to” approach: the type of data needed, the formula, how to calculate and interpret the math, a specific example followed by a brief review of the assumptions and limitations of that method.