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Break-even analysis or cost-volume-profit analysis | Free template

Break even analysis is a free template to make a cost-volume-profit analysis for products or projects. This break even analysis is done to define the volume and revenue that are necessary to achieve zero profit or to reach break even.

A break even analysis of a product or a project can be a good thing to do at the planning stage before production or work starts. A cost-volume-profit analysis can form the basis for pricing decisions, or form a basis for a cost-benefit assessment of a product or project.

In a break-even analysis the cost concepts of variable and fixed costs are used. Variable costs are costs that are affected by the volume and fixed costs are costs that are independent of volume. In a cost-volume-profit analysis a performance graph showing total revenues and total costs are drawn up. The break-even point in a performance graph is the volume where the revenue is as large as the total costs and at this point the profit is zero. Sales and volume in the break-even point is called break-even sale and break-even volume.

In a cost-volume-profit analysis you can determine if the required volume and revenue for a product or a project is reasonable and achievable. If it is not reasonable or possible to sell more than zero volume or zero turnover, it is pointless to begin production or work for the product or project.

You can use this template to make a break even analysis and calculate the break-even point for volume and the break-even point for revenue, and establish a performance graph.
Updated: 01-01-2015 | Created by All-templates.biz

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Tags: products decision making profit calculations excel