Break Even 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. The book is organized into six introduction to the basic concepts and simple methods; contribution margin methods; multiple product line methods; mixed-cost methods; methods to deal with uncertainty, and; special topics. The chapters are arranged in a progression from less difficult towards more difficult. Even so, each chapter stands alone so that the reader can read a chapter out of order and still gain value. Each chapter will offer several important ingredients for a practical 'how to' 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.