Cost-Volume-Profit Analysis for Single-Product Companies

Read the Chapter 6 introduction, and then click on "Next Section" to read Section 6.1. In this unit, Snowboard Company uses CVP analysis to determine its break-even point and what additional volumes it would need to sell to achieve a decent profit. CVP assumes that the selling price per unit is the same throughout the relevant range. Cost-volume-profit analysis involves finding the break-even point and target profit point in units and in sales dollars. The key formulas for an organization with a single product are developed and explained in the reading.