How Do I Create A Cost Volume Profit Graph In Excel?
A cost volume profit shows how costs, revenues, and profits vary with volume (sales). You can either plot total cost, or fixed and variable costs, which add up to total costs. One way to show this is to make a break-even chart. Put unit sales (number of items sold) in the first column, fixed costs in the second (which are a constant), variable costs in the third column (these are typically a straight line through zero), and in the fourth insert formulas that sum fixed and variable costs to make total costs. If you want you can skip the fixed and variable costs. In the next column, enter sales revenue. Select the sales and cost data, and create an XY chart. The total costs is an upward sloping line, and you’d better hope sales revenue is also upward sloping, but steeper. Where the lines cross is the breakeven point, above which additional sales bring in more revenue than they cost. You can also show profit, which is revenue minus costs. In the column after revenue above, enter formulas
