Chapter 1: Profit-Volume- Cost Analysis
In This Chapter
Understanding how profit-volume-cost analysis works
Calculating break-even points
Using real QuickBooks data for profit-volume-cost analysis
Dealing with some minor conundrums
Using the Profit-Volume-Cost Analysis workbook
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.
Hotels and airlines are types of businesses that often see surprising fluctuations ...
