3.Key in the number of units and press .

4.Key in the fixed cost and press to obtain the operating leverage.

Example 1: For the data given in example 1 of the Break-Even Analysis section, calculate the operating leverage at 2000 units and at 5000 units when the sales price is $13 a copy

Keystrokes

Display

 

13

13.00

Price per copy.

 

 

6.75

6.25

Profit per copy.

 

 

2000

25.00

Close to break-even point.

 

12000

 

 

13

13.00

Price per copy.

 

 

6.75

6.25

Profit per copy.

 

 

5000

 

Operating further from the breakeven

1.62

point and lesssensitive to changes in

 

12000

 

sales volume.

For repeated calculations the following HP-12C program can be used:

KEYSTROKES

 

DISPLAY

 

 

 

 

CLEAR

00-

 

 

3

01-

45

3

2

02-

45

2

 

03-

 

30

 

 

 

 

 

04-

 

20

 

 

 

 

 

05-

 

36

 

 

 

 

 

06-

 

36

 

 

 

 

1

07-

45

1

 

08-

 

30

 

 

 

 

 

09-

 

10

 

 

 

00

10-43, 33

00

 

 

 

 

58

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Image 59
HP 12C manual 10-43