This application is both a Business Tool and a Simulation.  It shows the relationships between the basic business variables of cost, volume and profit.  Firstly, a Break Even chart and Normal Distribution graph are used to show the interactive nature between these variables.  Secondly, the application simulates 40 randomly generated demand values and displays the results in tabular form.  The goal of this application is to help business learners understand basic cost-volume-profit calculations.

Item Name: CVPA Mini Sim Item Number: F-004 Price: Free   Click on Image to Begin.

Input Decision variables for this application include Price, Variable Cost, Fixed Cost, Mean Demand and Demand Standard Deviation.  The price and cost decision variables may be changed to show how these variables affect the break even point.  The demand variables may be changed to show how they affect the probability distribution.  All these decisions may be changed from their initial values by pressing the up/down arrows by each decision.

The 'Simulate' button generates random demand values so that profit calculations can be displayed in the Results Table.  Revenue, expenses, profit and probability are all displayed for each simulated demand value.  The probability value is the probability of achieving the listed demand level or less (P[x<demand]).  Pressing the 'ReSet' button will cause all variables and graphics to return to their initial states.