Tutorial | January 2006

Cost-Volume Profit Models

by David F. Hawkins, V.G. Narayanan, Jacob Cohen and Michele Jurgens

Abstract

Covers fixed, variable, and semivariable costs and their role in building and interpreting cost-volume-profit models. Introduces the cost-volume and contribution-volume-profit models and identifies some of their uses and limitations. Teaches how to use the cost-volume-profit model to determine profit at various levels of unit volume and how to calculate a breakeven point. Includes multiple exercises throughout the tutorial.

Keywords: Volume; Cost; Profit; Mathematical Methods;

Citation:

Hawkins, David F., V.G. Narayanan, Jacob Cohen, and Michele Jurgens. Cost-Volume Profit Models. Harvard Business School Tutorial 105-705, January 2006.