Cost Volume Profit Analysis Equations

 

 

 

 

 

 

 

Note here that since we are calculating the break even point, the value of profit in these formulae is zero. However, if you place a value on profit, the result of the calculation will be the sales value or the sales volume needed to make that amount of profit.

 

 

z = the normal deviate

x = the actual value of the variable ‘x’

μ = the mean value

σ = the standard deviation