Book description
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. Each chapter will offer several important ingredients for a practical 'how to' approach: 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.
Table of contents
- Preface
- Chapter 1: Introduction
- Chapter 2: Total Cost Method
- Chapter 3: Contribution Margin Method
- Chapter 4: Target Profit Method
- Chapter 5: Cost of Goods Sold Method
- Chapter 6: Modified Breakeven Analysis: Factoring Estimates of Demand
- Chapter 7: Dealing With Changes in Product Mix Using Weighted Averages
- Chapter 8: High-Low Method
- Chapter 9: Least Squares Method
- Chapter 10: Changing Costs
- Chapter 11: Changing Prices
- Chapter 12: Selling Price at Various Volumes
- Chapter 13: Multiple Breakeven Points
- Chapter 14: Net Present Value Method
- Chapter 15: Quadratic Equation
- Chapter 16: Tax Effects on Cost-Volume-Profit
- Appendix A: Glossary
- Appendix B: Limitations and Criticisms
- Appendix C: A Short Genealogy of Breakeven Analysis
- Appendix D: Using Breakeven Thinking to Decide Whether to Start a Business
- Appendix E: Annuity Table
- Notes
- References
Product information
- Title: Breakeven Analysis
- Author(s):
- Release date: August 2010
- Publisher(s): Business Expert Press
- ISBN: 9781606490174
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