Cost-Volume-Profit (CVP) Analysis Template Strictly Confidential

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.

All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
© Corporate Finance Institute®. All rights reserved.
Cost-Volume-Profit (CVP) Analysis

Total Per Unit

Sales (20,000 units) $ 1,200,000 $ 60
Less: Variable costs $ (900,000) $ (45)
Contribution Margin $ 300,000 $ 15
Less: Fixed costs $ (240,000)
Net income $ 60,000

Contribution margin ratio 25%

Variable expense ratio 75%

Break-even point 16,000

What-if analysis for target profit

Target profit $ 100,000
# of units needed 22,667

Margin of safety $240,000

Degree of operating leverage (DOL) 5

This file is for educational purposes only. E&OE

Corporate Finance Institute®

https://corporatefinanceinstitute.com/