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CVP Graphs are simple to create with Microsoft Excel (i.e. 2016) using these simple steps: In Row 1 of a new Excel worksheet, set up

CVP Graphs are simple to create with Microsoft Excel (i.e. 2016) using these simple steps:

In Row 1 of a new Excel worksheet, set up column headings for Volume, Revenue, and Expenses.

In Row 2, enter a volume of zero. Then calculate the corresponding revenues and expenses at that volume.

In Row 3, enter a higher volume, such as the volume at the high end of the companys relevant range. Calculate the corresponding revenues and expenses at that volume.

Highlight the data. Then click on the Insert tab on the menu bar and choose Scatter With a Line as the chart type. If you want to make the graph larger, choose Move Chart Location from the menu bar and select New Sheet and OK. Click on Insert Textbox to add labels for the breakeven point, revenue line, expense line, and so forth. Play around with the formatting features to get the look you want (for example, you may want to tilt the angle of the labels or add an arrow pointing to the break-even point, and so forth). Add a title to the graph, as well as labels for the axes.

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