Price and volume
How would a price or quantity change affect contribution and break-even?
Profitability Analysis Software
Know what drives your margin.
Test your next move.
Bring your sales plan, product costs and allocation rules into one reviewable model. Compare price, quantity and input-cost scenarios before changing commercial terms or sourcing decisions.
For finance leaders, cost accountants and commercial decision makers.
Work out the fixed and variable cost structure.
Define the cost plan by company, plant, financial year and period. Keep the version and plan reference with the cost structure.
- Infrastructure, material, labour, maintenance, power, selling and other costs
- Total cost, variable-cost percentage, fixed cost and variable cost
- See the cost behind the result
Bring fixed costs, variable costs and allocations into view.
- Understand product economics
Review the plan by product, customer or business segment.
- Test before you change the plan
Compare price, quantity and input-cost scenarios.
Management decisions
Make the next decision
with the cost in view.
The useful question is not only which result is higher. Reviewers need to see which commercial and cost assumptions create that result, then compare the consequences of changing them.
Product, service and customer mix
Which products, services, customers or segments support the plan after their costs are considered?
Make or buy
Which costs change under each option, and which costs remain with the business?
Commercial negotiation
How would sales-price or purchasing-cost changes affect margin before a customer or vendor negotiation?
Visible assumptions
Build a model management can challenge.
Scenario results depend on source records, costing rules, allocation choices and plan assumptions. Keeping them visible makes the comparison easier to review and revise.
Plan inputs
- Sales price
- Planned quantity
- Customer and product mix
Cost logic
- Fixed and variable costs
- Allocation rules
- Input costs
Review outputs
- Product cost
- Break-even
- Scenario comparison
How it works
A sales plan meets its target. Does the margin still hold?
Connect the sales plan to fixed and variable costs, allocation rules and product economics. Then test how price, quantity or input-cost changes affect the result.
Step 1 of 6
Work out fixed and variable costs.
- Information used
- Company, plant, financial year, period and cost-category records
- What you can review
- A versioned cost structure with fixed and variable components
Step 1 of 6
Work out fixed and variable costs.
- Information used
- Company, plant, financial year, period and cost-category records
- What you can review
- A versioned cost structure with fixed and variable components
Step 2 of 6
Prepare a customer-wise and product-wise sales plan.
- Information used
- Customer, product, list price, discount and sales quantity
- What you can review
- Planned sales price and sales revenue by customer and product
Step 3 of 6
Allocate fixed costs to products.
- Information used
- Fixed-cost structure and the selected allocation plan
- What you can review
- Fixed-cost allocation with its plan reference
Step 4 of 6
Calculate product cost.
- Information used
- Allocated fixed cost and product-level variable costs
- What you can review
- Cost by product, ready to compare with the sales plan
Step 5 of 6
Calculate break-even and profitability.
- Information used
- Product cost, planned sales price and quantity
- What you can review
- Product profit, total profit, break-even quantity and break-even revenue
Step 6 of 6
Test what-if alternatives.
- Information used
- Changes to sales price, quantity or input costs
- What you can review
- Comparable scenarios for pricing, sourcing and negotiation decisions
Your process and implementation scope are agreed with your team.
Before you change the plan
A clearer basis
for the next decision.
Start with the question you need to answer, then agree the data, cost logic and comparisons required.
Can we compare profitability by product and customer?
The scope can bring product, customer and business-segment views into the same analysis. We first agree the level of detail, source records and allocation rules.
What can change in a what-if scenario?
The recorded capability supports changes to sales price, quantity and input-cost assumptions. Exact scenario parameters and formulas are confirmed from your planning model.
What information is useful to begin?
An outline of your fixed and variable costs, customer/product sales plan and current allocation approach is a useful starting point. Discuss which prices, quantities and input costs you need to vary, and which product or customer decisions the analysis should support.
How can this support a make-or-buy decision?
Compare the relevant cost assumptions for the alternatives, including the costs that change and those that remain with the business. The model supports the discussion; the costing basis and other operational considerations need to be reviewed by your team.
Does the analysis make the decision for us?
No. It organises the plan, cost structure, allocation assumptions and scenarios so responsible reviewers can compare the consequences before acting.
Your next commercial decision
Bring the question.
Let’s examine the economics.
Tell us which product, customer or sourcing decision needs a clearer cost basis. We’ll discuss the model, assumptions and comparisons your team needs.
Discuss Your Requirements