MBA's Guide to Microsoft Excel

Chapter 11

Building a Profit Volume and Break-Even Analysis Workbook

rofit volume analysis lets you look at the revenues, costs, and profits of a business for a range of business volumes, or revenues. By using profit volume analysis, you can see how sensitive profits are to changes in business volume and where break-even points occur.

The profit volume and break-even analysis starter workbook described in this chapter pro- vides a framework to use in performing profit volume analysis and in calculating break-even points. This chapter shows how to use the workbook and modify it. In addition, this chap- ter includes two charts useful in portraying profit volume and break-even analysis data.

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