Chapter 8: Example 2

Cost-volume analysis
Enter the fixed and variable costs for the options in
the data area. You may enter a volume at which to
perform a volume analysis.

Data Cost-volume analys

Akron Bowling Green Chicago 500000
Fixed cost 30000 60000 110000 400000
Variable cost 75 45 25 300000
200000

$
Volume(optional) 2000 100000
0
Results 0 1000 2000 3000
Breakeven points Units Dollars Units
Akron vs. Bowling Gr 1000 105000
Akron vs. Chicago 1600 150000
Akron Bowlin
Bowling Green vs. Ch 2500 172500 Chicago

Volume analysis @2000 units

Akron Bowling Green Chicago
Total cost $ 180,000.00 $ 150,000.00 $ 160,000.00

Graph
Units Akron Bowling Green Chicago
0 30000 60000 110000
5000 405000 285000 235000
 Cost-volume analysis
500000
400000
300000
200000
$

100000
0
0 1000 2000 3000 4000 5000 6000
Units

Akron Bowling Green

Chicago