The Profit-Volume Analysis Worksheet

Inputs
Revenues
Unit Sales Price $ 15.00
Low Unit Volume Tested 10,000
High Unit Volume Tested 20,000

Variable Costs
Vary-with-Unit Costs
Direct Labor $ 2.25
Direct Material $ 2.25
Factory Overhead $ 1.00
Other Vary-with-Unit Costs $ 0.50
Vary-with-Revenue Costs
Sales Commissions 5.00%
Sales Tax 8.00%
Other Vary-with-Revenue Costs 1.50%

Fixed Costs $ 150,000.00

Vary-with-Profit Costs
State Income Tax 10.00%
Federal Income Tax 20.00%
Other Vary-with-Profit Costs 5.00%

Break-Even Analysis Forecast

Volume in Units 21,978
Total Sales $ 329,670.00

Variable Costs
Direct Labor $ (49,450.50)
Direct Material $ (49,450.50)
Factory Overhead $ (21,978.00)
Other Vary-with-Unit Costs $ (10,989.00)
Sales Commissions $ (16,483.50)
Sales Tax $ (26,373.60)
Other Vary-with-Revenue Costs $ (4,945.05)
Total Variable Costs $ (179,670.15)

Contribution Margin $ 149,999.85

Fixed Costs $ (150,000.00)

Profit Before Vary-with-Profit Costs $ (0.15)

Profit Volume Forecast

Volume in Units 10,000 12,000
Total Sales $ 150,000.00 $ 180,000.00

Variable Costs
Direct Labor $ (22,500.00) $ (27,000.00)
Direct Material $ (22,500.00) $ (27,000.00)
Factory Overhead $ (10,000.00) $ (12,000.00)
 Other Vary-with-Unit Costs $ (5,000.00) $ (6,000.00)
Sales Commissions $ (7,500.00) $ (9,000.00)
Sales Tax $ (12,000.00) $ (14,400.00)
Other Vary-with-Revenue Costs $ (2,250.00) $ (2,700.00)
Total Variable Costs $ (81,750.00) $ (98,100.00)

Contribution Margin $ 68,250.00 $ 81,900.00

Fixed Costs $ (150,000.00) $ (150,000.00)

Contribution Margin - Fixed Costs $ (81,750.00) $ (68,100.00)

Vary-with-Profit Costs
State Income Tax $ 8,175.00 $ 6,810.00
Federal Income Tax $ 16,350.00 $ 13,620.00
Other Vary-with-Profit Costs $ 4,087.50 $ 3,405.00
Total Vary-with-Profit Costs $ 28,612.50 $ 23,835.00

Profits $ (53,137.50) $ (44,265.00)

Common Size Profit Volume Forecast

Volume in Units 10,000 12,000
Total Sales 100.00% 100.00%

Variable Costs
Direct Labor -15.00% -15.00%
Direct Material -15.00% -15.00%
Factory Overhead -6.67% -6.67%
Other Vary-with-Unit Costs -3.33% -3.33%
Sales Commissions -5.00% -5.00%
Sales Tax -8.00% -8.00%
Other Vary-with-Revenue Costs -1.50% -1.50%
Total Variable Costs -54.50% -54.50%

Contribution Margin 45.50% 45.50%

Fixed Costs -100.00% -83.33%

Contribution Margin - Fixed Costs -54.50% -37.83%

Vary-with-Profit Costs
State Income Tax 5.45% 3.78%
Federal Income Tax 10.90% 7.57%
Other Vary-with-Profit Costs 2.73% 1.89%
Total Vary-with-Profit Costs 19.08% 13.24%

Profits -35.43% -24.59%

Profit Volume Area Chart Data

Volumes in Units 10,000 12,000
Fixed Costs $ 150,000.00 $ 150,000.00
Variable Costs $ 81,750.00 $ 98,100.00
Costs Varying with Profits $ (28,612.50) $ (23,835.00)
Profit $ (53,137.50) $ (44,265.00)
 Break-Even Analysis Line Chart Data
Volumes in Units 10,000 12,000
Total Fixed Costs $ 150,000.00 $ 150,000.00
Total Variable Costs $ 203,137.50 $ 224,265.00
Total Sales $ 150,000.00 $ 180,000.00

Copyright 2015 by Stephen L. Nelson CPA, PLLC. All rights reserved.

Cells
Cells in
in highlighted
highlighted green
green
represent
represent inputs that you
inputs that you provide,
provide,
while
while cells
cells highlighted
highlighted in
in gray
gray
represent
represent calculations
calculations that
that
shouldn't
shouldn't be altered.
be altered.

Don't
Don't miss
miss the
the profit-volume
profit-volume area
area
chart
chart and breakeven line
and breakeven line chart
chart on
on
the
the subsequent
subsequent sheets!
sheets!

14,000 16,000 18,000 20,000

$ 210,000.00 $ 240,000.00 $ 270,000.00 $ 300,000.00

$ (31,500.00) $ (36,000.00) $ (40,500.00) $ (45,000.00)

$ (31,500.00) $ (36,000.00) $ (40,500.00) $ (45,000.00)
$ (14,000.00) $ (16,000.00) $ (18,000.00) $ (20,000.00)
$ (7,000.00) $ (8,000.00) $ (9,000.00) $ (10,000.00)
$ (10,500.00) $ (12,000.00) $ (13,500.00) $ (15,000.00)
$ (16,800.00) $ (19,200.00) $ (21,600.00) $ (24,000.00)
$ (3,150.00) $ (3,600.00) $ (4,050.00) $ (4,500.00)
$ (114,450.00) $ (130,800.00) $ (147,150.00) $ (163,500.00)

$ 95,550.00 $ 109,200.00 $ 122,850.00 $ 136,500.00

$ (150,000.00) $ (150,000.00) $ (150,000.00) $ (150,000.00)

$ (54,450.00) $ (40,800.00) $ (27,150.00) $ (13,500.00)

$ 5,445.00 $ 4,080.00 $ 2,715.00 $ 1,350.00

$ 10,890.00 $ 8,160.00 $ 5,430.00 $ 2,700.00
$ 2,722.50 $ 2,040.00 $ 1,357.50 $ 675.00
$ 19,057.50 $ 14,280.00 $ 9,502.50 $ 4,725.00

$ (35,392.50) $ (26,520.00) $ (17,647.50) $ (8,775.00)

14,000 16,000 18,000 20,000

100.00% 100.00% 100.00% 100.00%

-15.00% -15.00% -15.00% -15.00%

-15.00% -15.00% -15.00% -15.00%
-6.67% -6.67% -6.67% -6.67%
-3.33% -3.33% -3.33% -3.33%
-5.00% -5.00% -5.00% -5.00%
-8.00% -8.00% -8.00% -8.00%
-1.50% -1.50% -1.50% -1.50%
-54.50% -54.50% -54.50% -54.50%

45.50% 45.50% 45.50% 45.50%

-71.43% -62.50% -55.56% -50.00%

-25.93% -17.00% -10.06% -4.50%

2.59% 1.70% 1.01% 0.45%

5.19% 3.40% 2.01% 0.90%
1.30% 0.85% 0.50% 0.23%
9.08% 5.95% 3.52% 1.58%

-16.85% -11.05% -6.54% -2.93%

14,000 16,000 18,000 20,000

$ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
$ 114,450.00 $ 130,800.00 $ 147,150.00 $ 163,500.00
$ (19,057.50) $ (14,280.00) $ (9,502.50) $ (4,725.00)
$ (35,392.50) $ (26,520.00) $ (17,647.50) $ (8,775.00)
 14,000 16,000 18,000 20,000
$ 150,000.00 $ 150,000.00 $ 150,000.00 $ 150,000.00
$ 245,392.50 $ 266,520.00 $ 287,647.50 $ 308,775.00
$ 210,000.00 $ 240,000.00 $ 270,000.00 $ 300,000.00
$350,000.00

$300,000.00

$250,000.00

$200,000.00 Profit
Costs Varying with Profits
Variable Costs
Fixed Costs
$150,000.00 Volumes in Units

$100,000.00

$50,000.00

$-
1 2 3 4 5 6
$350,000.00

$300,000.00

$250,000.00

$200,000.00
Total Fixed
Costs
Total Variable
Costs
Total Sales
$150,000.00

$100,000.00

$50,000.00

$-
$150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00