How do you estimate the profit equation, build a CVP graph, and build a contribution income statement?

Single product case

In the following video, I will use the high-low method to estimate the price \(P\), the unit variable cost \(V_c\) and the fixed costs \(FC_p\) from the following, very incomplete, pieces of information:

Activity March April
Volume (number of Mojitos sold) 1,000 1,500
Revenues (in euros) 7,000 10,500
Operating Income (in euros) -1,100 1,100

Then, I will use this profit equation to build a CVP graph and a contribution income statement for each month.

Multi-product case

In the next video, I will follow more or less the same steps but this time on the case we started to build in Chapters 2 and 3. You can download the file on which we worked here.

You can also download the file with the complete solutions of this case.

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