I took a financial accounting course and conducted CVP analysis on a case study for a group project. Cost-Volume-Profit Analysis allows you to analyze a company's financial statements by calculating its WACM (Weighted Average Contribution Margin), Contribution Margin Ratio (%), Margin of Safety ($) and Break Even Sales ($). All information can ultimately guide a managerial decision for the company about which services yield the most profit (which services yield the highest contribution margin) and therefore allow them to focus on profitable and maintainable services to generate a target revenue.
Through the projected growth rate of each individual asset on the financial statements, we could also know whether or not a company should move its production overseas or stay in the country. This is possible because the projected growth rate of each asset also changes the Total Revenue and Variable Cost and therefore also changes its CM (Contribution Margin) and WACM (Weighted Average Contribution Margin).
Below is a slideshow of the powerpoint. You can click the right side of the second photo below to see the remaining slides.
Here is a sharable link. https://docs.google.com/presentation/d/1jePuF0JwatlF3Z_lNJiGGRI9PLvZHPip3M9LCEWXDUg/edit?usp=sharing
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