Cost-Volume-Profit Analysis

Pricing your product or service can be the difference between success or failure of a small business. Learn more about cost-volume-profit analysis to consider all the economic variables involved when setting a price.

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Image shows a piece of paper folded in half; one half is labeled "Fixed costs" and the other is "Variable costs". Under "Fixed costs" it reads: "The costs associated with your business's product that must be paid regardless of how much you sell: rent for office space or storefront; weekly payroll; equipment depreciation." Under "variable costs" it reads "the costs directly related to the sales volume of your business: delivery/shipping charges; sales commissions; advertising and publicity." Title reads: "Fixed costs vs. variable costs"

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