3 SLP MKT599

Chrysw49
CVPCalculator.xls

CVP Calculator, BUS599

R&D Total Budget $ 24,000,000
R&D% Allocation 33%
R&D Costs $ 7,920,000
Fixed Costs $ 70,000,000
Total Fixed Costs $ 77,920,000
Target Profit $0
Variable Cost/Unit $ 140.00
Price $ 250.00 Volume 700,000
Volume 708,364 Price $ 251.31
Sales Revenue $ 177,090,909.09 Sales Revenue $ 175,920,000.00
ROS 0.00% ROS 0.00%
Enter Price Calculate Volume
Enter Volume Calculate Price
This CVP Calculator has been developed specifically for BUS599 SLP. -Enter the R&D allocation %. -Enter the Fixed Costs. -Enter the Target Profit (use 0 for Breakeven Calculation.) -Enter the Variable Cost per Unit. The Calculator will calculate two different formulas. Enter Price and it will calculate the Volume. Enter the Volume and it will calculate Price.
CLEAR ALL
Example Calculation: Take X5 R&D% = 33% Fixed Costs = $70,000,000 Variable Cost/unit = $140.00 For Breakeven, Target Profit = 0 Enter Price = $250.00 Calculate Volume (Breakeven) = 696,364 Enter Volume = 700,000 Calculate Price (Breakeven) = $249.43 What does this mean? It means: To Breakeven (profit = 0), with a price of $250.00, you need to sell 696,364 units. OR, if you sell 700,000, the price needs to be $249.43 to breakeven. Another Example: Suppose you want to obtain a profit of $20,000,000. Enter that in the Target Profit. At a price of $250.00, you need to sell 878,182 units. OR if you sell 700,000 units, you need to sell them at $278.00.
Enter the data in the Green Cells. Calculations are automatic.