Create a simple CVP chart using Excel

Untitled Forums Accounting Capital Budgeting Create a simple CVP chart using Excel


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    Ayush Nair

    Search YouTube for Excel CVP charts. Create a simple CVP chart using Excel and your own data. You may choose to use examples from the Web as a guide. Show the data area and clearly label your CVP chart. Explanation is essential.

    john Smith

    Creating a simple CVP (Cost-Volume-Profit) chart using Excel is a great way to visualize the relationship between costs, volume, and profits in a business. CVP charts are often used for financial analysis and decision-making. Below are the steps to create a basic CVP chart in Excel:

    Step 1: Prepare the data Create a table with the following columns: “Quantity Sold,” “Selling Price per Unit,” “Variable Cost per Unit,” and “Fixed Costs.” Add values to each row to represent different scenarios of quantity sold and corresponding costs.

    For this example, let’s assume the following data:

    Quantity Sold | Selling Price per Unit | Variable Cost per Unit | Fixed Costs 100 | $10 | $6 | $300 200 | $10 | $6 | $300 300 | $10 | $6 | $300 400 | $10 | $6 | $300 500 | $10 | $6 | $300 600 | $10 | $6 | $300

    Step 2: Create the CVP chart

    1. Select the data: Highlight the table containing the data.

    2. Go to the “Insert” tab in the Excel ribbon.

    3. Click on “Scatter” under the “Charts” section.

    4. Select the scatter plot style that shows points without connecting lines.

    5. A blank chart will be created.

    6. Right-click on the chart area and click on “Select Data.”

    7. In the “Legend Entries (Series)” section, click “Add.”

    8. In the “Edit Series” window that appears, enter the following details:

      • Series name: Enter a name for the series (e.g., “Profit”)
      • Series X values: Select the range of “Quantity Sold” values.
      • Series Y values: Calculate the profit for each scenario (Selling Price per Unit – Variable Cost per Unit) * Quantity Sold – Fixed Costs).
    9. Click “OK” to close the “Edit Series” window.

    10. Back in the “Select Data Source” window, click “OK.”

    Step 3: Format the chart

    1. Double-click on the chart title and give it a relevant title like “Cost-Volume-Profit (CVP) Chart.”

    2. Label the axes: Right-click on the horizontal axis, select “Format Axis,” and add a label like “Quantity Sold.” Similarly, label the vertical axis as “Profit.”

    3. Customize the chart style and color scheme to your preference.

    Now, you have a basic CVP chart in Excel, showing the relationship between quantity sold and profit for different scenarios. The chart will help you understand how changes in volume impact the company’s profit at different levels of sales.

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