The Profit-Volume Analysis Worksheet

Inputs
Revenues
Unit Sales Price $ 1,500.00 Cells
Cells in
in highlighted
highlighted gg
Low Unit Volume Tested 150 represent
represent inputs
inputs that
tha
High Unit Volume Tested 300 provide,
provide, while
while cells
cells hh
in
in gray
gray represent
represent calca
Variable Costs that shouldn't be alte
that shouldn't be alte
Vary-with-Unit Costs
Don't
Don't miss
miss the
the profit-
profit
Direct Labor $ 75.00 area
area chart and break
chart and break
Direct Material $ 40.00 chart
chart on
on the
the subsequ
subsequ
Factory Overhead $ 400.00 sheets!
sheets!
Other Vary-with-Unit Costs $ 40.00
Vary-with-Revenue Costs
Sales Commissions 5.00%
Sales Tax 8.00%
Other Vary-with-Revenue Costs 1.50%

Fixed Costs $ 150,000.00

Vary-with-Profit Costs
State Income Tax 10.00%
Federal Income Tax 20.00%
Other Vary-with-Profit Costs 5.00%

Break-Even Analysis Forecast

Volume in Units 206
Total Sales $ 309,000.00

Variable Costs
Direct Labor $ (15,450.00)
Direct Material $ (8,240.00)
Factory Overhead $ (82,400.00)
Other Vary-with-Unit Costs $ (8,240.00)
Sales Commissions $ (15,450.00)
Sales Tax $ (24,720.00)
Other Vary-with-Revenue Costs $ (4,635.00)
Total Variable Costs $ (159,135.00)

Contribution Margin $ 149,865.00

Fixed Costs $ (150,000.00)

Profit Before Vary-with-Profit Costs $ (135.00)

Profit Volume Forecast

Volume in Units 150 180
Total Sales $ 225,000.00 $ 270,000.00

Variable Costs
 Direct Labor $ (11,250.00) $ (13,500.00)
Direct Material $ (6,000.00) $ (7,200.00)
Factory Overhead $ (60,000.00) $ (72,000.00)
Other Vary-with-Unit Costs $ (6,000.00) $ (7,200.00)
Sales Commissions $ (11,250.00) $ (13,500.00)
Sales Tax $ (18,000.00) $ (21,600.00)
Other Vary-with-Revenue Costs $ (3,375.00) $ (4,050.00)
Total Variable Costs $ (115,875.00) $ (139,050.00)

Contribution Margin $ 109,125.00 $ 130,950.00

Fixed Costs $ (150,000.00) $ (150,000.00)

Contribution Margin - Fixed Costs $ (40,875.00) $ (19,050.00)

Vary-with-Profit Costs
State Income Tax $ 4,087.50 $ 1,905.00
Federal Income Tax $ 8,175.00 $ 3,810.00
Other Vary-with-Profit Costs $ 2,043.75 $ 952.50
Total Vary-with-Profit Costs $ 14,306.25 $ 6,667.50

Profits $ (26,568.75) $ (12,382.50)

Common Size Profit Volume Forecast

Volume in Units 150 180
Total Sales 100.00% 100.00%

Variable Costs
Direct Labor -5.00% -5.00%
Direct Material -2.67% -2.67%
Factory Overhead -26.67% -26.67%
Other Vary-with-Unit Costs -2.67% -2.67%
Sales Commissions -5.00% -5.00%
Sales Tax -8.00% -8.00%
Other Vary-with-Revenue Costs -1.50% -1.50%
Total Variable Costs -51.50% -51.50%

Contribution Margin 48.50% 48.50%

Fixed Costs -66.67% -55.56%

Contribution Margin - Fixed Costs -18.17% -7.06%

Vary-with-Profit Costs
State Income Tax 1.82% 0.71%
Federal Income Tax 3.63% 1.41%
Other Vary-with-Profit Costs 0.91% 0.35%
Total Vary-with-Profit Costs 6.36% 2.47%

Profits -11.81% -4.59%

Profit Volume Area Chart Data

 Volumes in Units 150 180
Fixed Costs $ 150,000.00 $ 150,000.00
Variable Costs $ 115,875.00 $ 139,050.00
Costs Varying with Profits $ (14,306.25) $ (6,667.50)
Profit $ (26,568.75) $ (12,382.50)

Break-Even Analysis Line Chart Data

Volumes in Units 150 180
Total Fixed Costs $ 150,000.00 $ 150,000.00
Total Variable Costs $ 251,568.75 $ 282,382.50
Total Sales $ 225,000.00 $ 270,000.00

Copyright 2015 by Stephen L. Nelson CPA, PLLC. All rights reserved.

t

Cells
Cells in
in highlighted
highlighted green
green
represent
represent inputs that you
inputs that you
provide,
provide, while
while cells
cells highlighted
highlighted
in
in gray
gray represent
represent calculations
calculations
that shouldn't be altered.
that shouldn't be altered.

Don't
Don't miss
miss the
the profit-volume
profit-volume
area
area chart and breakeven
chart and breakeven line
line
chart
chart on
on the
the subsequent
subsequent
sheets!
sheets!

210 240 270 300

$ 315,000.00 $ 360,000.00 $ 405,000.00 $ 450,000.00
$ (15,750.00) $ (18,000.00) $ (20,250.00) $ (22,500.00)
$ (8,400.00) $ (9,600.00) $ (10,800.00) $ (12,000.00)
$ (84,000.00) $ (96,000.00) $ (108,000.00) $ (120,000.00)
$ (8,400.00) $ (9,600.00) $ (10,800.00) $ (12,000.00)
$ (15,750.00) $ (18,000.00) $ (20,250.00) $ (22,500.00)
$ (25,200.00) $ (28,800.00) $ (32,400.00) $ (36,000.00)
$ (4,725.00) $ (5,400.00) $ (6,075.00) $ (6,750.00)
$ (162,225.00) $ (185,400.00) $ (208,575.00) $ (231,750.00)

$ 152,775.00 $ 174,600.00 $ 196,425.00 $ 218,250.00

$ (150,000.00) $ (150,000.00) $ (150,000.00) $ (150,000.00)

$ 2,775.00 $ 24,600.00 $ 46,425.00 $ 68,250.00

$ (277.50) $ (2,460.00) $ (4,642.50) $ (6,825.00)

$ (555.00) $ (4,920.00) $ (9,285.00) $ (13,650.00)
$ (138.75) $ (1,230.00) $ (2,321.25) $ (3,412.50)
$ (971.25) $ (8,610.00) $ (16,248.75) $ (23,887.50)

$ 1,803.75 $ 15,990.00 $ 30,176.25 $ 44,362.50

210 240 270 300

100.00% 100.00% 100.00% 100.00%

-5.00% -5.00% -5.00% -5.00%

-2.67% -2.67% -2.67% -2.67%
-26.67% -26.67% -26.67% -26.67%
-2.67% -2.67% -2.67% -2.67%
-5.00% -5.00% -5.00% -5.00%
-8.00% -8.00% -8.00% -8.00%
-1.50% -1.50% -1.50% -1.50%
-51.50% -51.50% -51.50% -51.50%

48.50% 48.50% 48.50% 48.50%

-47.62% -41.67% -37.04% -33.33%

0.88% 6.83% 11.46% 15.17%

-0.09% -0.68% -1.15% -1.52%

-0.18% -1.37% -2.29% -3.03%
-0.04% -0.34% -0.57% -0.76%
-0.31% -2.39% -4.01% -5.31%

0.57% 4.44% 7.45% 9.86%

 210 240 270 300
$ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
$ 162,225.00 $ 185,400.00 $ 208,575.00 $ 231,750.00
$ 971.25 $ 8,610.00 $ 16,248.75 $ 23,887.50
$ 1,803.75 $ 15,990.00 $ 30,176.25 $ 44,362.50

210 240 270 300

$ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
$ 313,196.25 $ 344,010.00 $ 374,823.75 $ 405,637.50
$ 315,000.00 $ 360,000.00 $ 405,000.00 $ 450,000.00
$500,000.00

$450,000.00

$400,000.00

$350,000.00

$300,000.00
Profit
Costs Varying with Profits
$250,000.00 Variable Costs
Fixed Costs
Volumes in Units
$200,000.00

$150,000.00

$100,000.00

$50,000.00

$-
1 2 3 4 5 6
$500,000.00

$450,000.00

$400,000.00

$350,000.00

$300,000.00

Total Fixed
Costs
$250,000.00 Total Variable
Costs
Total Sales

$200,000.00

$150,000.00

$100,000.00

$50,000.00

$-
$150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00