Business Mathematics in Canada, Sixth Edition

Excel Workbook for:

Exercise 5.3: CVP Analysis
After you program the five templates (one on each worksheet), you can use them to help solve
Problems 1-14 and 19-26 in Exercise 5.3. All five templates are based on the net income formula:

NI = (S - VC) X - FC
If you know any four of the five variables, go to the worksheet for the remaining unknown variable.
Enter the four known values in the yellow input cells. The computed value of the unknown variable
will appear in the blue output cell.

Key:
In cells with yellow fill, you enter input values or data.
In cells with blue fill,
you create an appropriate formula.
In cells with green fill, you can employ a special Excel function.

Calculating the Net Income, NI

Instructions: The formula NI = (S - VC) X - FC is already arranged to calculate NI.
Then program cell C11 with the right side of the formula.
Selling price per unit, S
Varible costs per unit, VC
Total fixed costs, FC
Number of units sold, X
Net income, NI

Calculating the Number of units sold, X

Instructions: Re-arrange the formula NI = (S - VC) X - FC to isolate X.
Then program cell C11 with the right side of the derived formula.
Selling price per unit, S
Varible costs per unit, VC
Total fixed costs, FC
Net income, NI
Number of units sold, X

Calculating the Selling price per unit, S

Instructions: Re-arrange the formula NI = (S - VC) X - FC to isolate S.
Then program cell C11 with the right side of the derived formula.
Varible costs per unit, VC
Total fixed costs, FC
Number of units sold, X
Net income, NI
Selling price per unit, S

Calculating the Variable Costs per unit, VC

Instructions: Re-arrange the formula NI = (S - VC) X - FC to isolate VC.
Then program cell C11 with the right side of the derived formula.
Selling price per unit, S
Total fixed costs, FC
Number of units sold, X
Net income, NI
Varible costs per unit, VC

Calculating the Fixed Costs, FC

Instructions: Re-arrange the formula NI = (S - VC) X - FC to isolate FC.
Then program cell C11 with the right side of the derived formula.
Selling price per unit, S
Varible costs per unit, VC
Number of units sold, X
Net income, NI
Total fixed costs, FC