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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.
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.
REGISTERS
n: Unused i: Unused
PV: Unused PMT: Unused
FV: Unused
R
0
: Unused
R
1
: F R
2
: V
R
3
: P R
4
-R
.8
: Unused
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.