CVP SPREADSHEET EXAMPLE

Current Situation Option 1 Option 2

Selling Price 10 10 11
Variable Costs 4.0 4.5 4.5
Fixed Costs 120,000 120,000 120,000
Units Sold 25,000 25,000 23,500

Per unit
Selling Price 10.0 10.0 11.0
Variable Costs 4.0 4.5 4.5
Contribution Margin 6.0 5.5 6.5

Total Values
Sales Revenue 250,000 250,000 258,500
Variable Costs 100,000 112,500 105,750
Contribution Margin 150,000 137,500 152,750
Fixed Costs 120,000 120,000 120,000
Net Profit 30,000 17,500 32,750

BEP 20,000 21,818 18,462 units

200,000 218,182 203,077 GBP

Margin of Safety 20.00% 12.73% 21.44%

5,000 3,182 5,038 units