IN THIS CHAPTER
Understanding how profit-volume-cost analysis works
Computing break-even points
Performing profit-volume-cost analysis with real QuickBooks data
Dealing with some minor conundrums
Working with the Profit-Volume-Cost Analysis workbook
Profit-volume-cost analysis is a powerful tool that estimates how a business’s profits change as its 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.