Cost Structures and Flexibility - Blank Strictly Confidential

Table of Contents
#VALUE!

Notes
This Excel model is for educational purposes only and should not be used for any other reason.
All content is Copyright material of CFI Education Inc.
https://corporatefinanceinstitute.com/

© 2019 CFI Education Inc.

All rights reserved.  The contents of this publication, including but not limited to all written material, content layout, images, formulas, and code, are protected under international copyright and trademark laws.  
No part of this publication may be modified, manipulated, reproduced, distributed, or transmitted in any form by any means, including photocopying, recording, or other electronic or mechanical methods,
© Corporate Finance Institute. All rights reserved. 
Company A Company B

Cost Model
Sales Volume 10,000 10,000
Sales Price/Unit $10 $10
Variable Cost/Unit $4 $6
Fixed Costs $40,000 $20,000

Revenue
Variable costs
Contribution Margin

Fixed Costs
Net Earnings

Breakeven Analysis
=Fixed Cost/CM*Sales ($)
=Fixed Cost/CM*Sales (units)

Margin of Safety
=Sales-Breakeven/Sales

Profit by Sales Volume

0 0
5,000 5,000
10,000 10,000
15,000 15,000
20,000 20,000

$12 $100,000

$10 $80,000
$60,000
$8
Net Earnings ($000)

Net Earnings ($000)

$40,000
$6
$20,000
$4 $0
$2 ($20,000)0 5,000 10,000 15,000 20,000
Volume Volume
($40,000)
$0
0 5,000 10,000 15,000 20,000 ($60,000)