How much will profits decrease if we don't sell the budgeted number of units?

CVP and break-even analysis are incredibly useful tools that finance professionals use throughout their careers. The formula is simple but powerful. The CVP formula is the basic equation that determines almost every line of the income statement. It's the formula that drives projections, forecasts, and budgets. The formula can be used for a wide range of analyses that answer key business questions.

The course begins with a quick overview of how CVP analysis is used to calculate profitability and how break-even analysis can help you find a target sales volume. We also explore some key questions it can answer. The rest of this course dives deeper into these concepts. We'll look at the CVP and break-even formulas in more detail and how to use them. I'll show how they can help inform business decisions.

This course provides the basics for those new to CVP while providing insights to those with experience with CVP and break-even analysis.

2a:T5df,This course will cover the concepts of forecasting and budgeting from a finance perspective. The course includes many example problems, both in presentation form, and many using Excel worksheets. Each Excel worksheet problem will include a downloadable Excel worksheet that has at least two tabs, one having the answer, the second including a preformatted worksheet that can be populated in a step-by-step process along with the instructional video. To forecast and budget we need to make predictions and projections about the future. This is often done by first taking information from the past as our starting point. The starting point will generally be our prior financial statements, including our prior balance sheet, income statement, and statement of cash flows. We will then consider changes that we expect to take place, including those we plan on making and changes to the economy and business environment. When constructing our budgets will need to go in a systemat