Enter the retail price ($), the number of units, and the fixed costs plus variable costs ($) into the calculator to determine the Cost Volume Profit.

## Cost Volume Profit Formula

The following formula is used to calculate the Cost Volume Profit.

CVP = RP * U - TC
• Where CVP is the Cost Volume Profit ($) • RP is the retail price ($)
• U is the number of units
• TC is the fixed costs plus variable costs ($) To calculate the cost volume profit, multiply the retail price by the number of units, then subtract the fixed costs plus variable costs. ## How to Calculate Cost Volume Profit? The following example problems outline how to calculate Cost Volume Profit. Example Problem #1 1. First, determine the retail price ($). In this example, the retail price ($) is given as 400 . 2. Next, determine the number of units. For this problem, the number of units is given as 20 . 3. Next, determine the fixed costs plus variable costs ($). In this case, the fixed costs plus variable costs ($) is found to be 300. 4. Finally, calculate the Cost Volume Profit using the formula above: CVP = RP * U – TC Inserting the values from above yields: CVP = 400 * 20 – 300 = 7700 ($)

Example Problem #2

The variables needed for this problem are provided below:

retail price ($) = 50 number of units = 20 fixed costs plus variable costs ($) = 30

Entering these values and solving gives:

CVP = 50 * 20 – 30 = 970 (\$)