HP 12C manual Profit and Loss Analysis

	REGISTERS
n: Unused		i: Unused
PV: Unused		PMT: Unused
FV: Unused		R0: Unused
R1: F		R2: V
R3: P		R4-R.8: Unused

1.Key in the program.

2.Key in and store input variables F, V and P as described in the Break-Even Analysis program.

3.Key in the sales volume and press to calculate the operating leverage.

4.To calculate a new operating leverage at a different sales volume, key in the new sales volume and press

Example 2: For the figures given in example 2 of the Break-Even Analysis section, calculate the operating leverage at a sales volume of 9,000 and 20,000 units if the sales price is $12.50 per unit.

	Keystrokes	Display
35000	1	35,000.00	Fixed costs.
8.25	2	8.25	Variable cost.
12.5	3	12.50	Sales price.
9000		11.77	Operating leverage near break-even.
20000		1.70	Operating leverage further from
			break-even.

Profit and Loss Analysis

The HP-12C may be programmed to perform simplified profit and loss analysis using the standard profit income formula and can be used as a dynamic simulator to quickly explore ranges of variables affecting the profitability of a marketing operation.

The program operates with net income return and operating expenses as percentages. Both percentage figures are based on net sales price.

It may also be used to simulate a company wide income statement by replacing list price with gross sales and manufacturing cost with cost of goods sold.

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