Chapter 1: Profit-Volume- Cost Analysis

In This Chapter

check.png Understanding how profit-volume-cost analysis works

check.png Calculating break-even points

check.png Using real QuickBooks data for profit-volume-cost analysis

check.png Dealing with some minor conundrums

check.png Using the Profit-Volume-Cost Analysis workbook

check.png Dealing with vary-with-profit costs

Profit-volume-cost analysis is a powerful tool that estimates how a business’s profits change as the sales volumes change, as well as break-even points. (A break-even point is the sales revenue level that produces zero profits.)

Profit-volume-cost analysis often produces surprising results. Typically, the analysis shows that small changes in a business’s sales volume produce big changes in profits.

tip.eps Hotels and airlines are types of businesses that often see surprising fluctuations ...

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