CVP Analysis

Learning objective:

Students will create a multi-product profitability analysis that can be used to determine the effects of changing business conditions on the client's financial position. Specifically, students will calculate breakeven points, operating income, the weighted average contribution margin, margin of safety, operating leverage, and so forth. Students will be guided to use Excel in such a way that any changes to the assumptions will correctly ripple through the entire profitability analysis, enabling the client to use this spreadsheet model over and over, using different "what if" assumptions. Finally, students will advise the client of three potential changes to the business cost structure.

CVP Excel project- Jake's pet supply business - student starting file.xlsx

This is the starting Excel file given to students. It contains the business description, directions, and a template for the CVP model. A few check figures are also included. It also contains three "what if" scenarios to be used in advising the client. Finally, it includes a suggested grading rubric. Please notice the tabs at the bottom of the workbook.