Profit And Loss Analysis - HP 12c Solutions Handbook

n: Unused
PV: Unused
FV: Unused
R : F
1
R : P
3
1. Key in the program.
2. Key in and store input variables F, V and P as described in the Break-Even
Analysis program.
3. Key in the sales volume and press
leverage.
4. To calculate a new operating leverage at a different sales volume, key in
the new sales volume and press
Example 2: For the figures given in example 2 of the Break-Even Analysis
section, calculate the operating leverage at a sales volume of 9,000 and
20,000 units if the sales price is $12.50 per unit.
Keystrokes
35000 1
8.25 2
12.5 3
9000
20000

Profit and Loss Analysis

The HP-12C may be programmed to perform simplified profit and loss
analysis using the standard profit income formula and can be used as a
dynamic simulator to quickly explore ranges of variables affecting the
profitability of a marketing operation.
The program operates with net income return and operating expenses as
percentages. Both percentage figures are based on net sales price.
It may also be used to simulate a company wide income statement by
replacing list price with gross sales and manufacturing cost with cost of
goods sold.
REGISTERS
i: Unused
PMT: Unused
R : Unused
0
R : V
2
R -R
4
Display
35,000.00 Fixed costs.
8.25 Variable cost.
12.50 Sales price.
11.77 Operating leverage near break-even.
Operating leverage further from
1.70
break-even.
59
: Unused
.8
to calculate the operating