Profit-volume chart

A profit-volume chart is a cost-volume-profit graph that plots profit directly against sales volume as a single line, starting at minus fixed costs and rising at the contribution margin per unit.

ByHoang TruongUpdated July 11, 2026

See it move

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With €40,000 of fixed costs and a €25 contribution margin per unit, the profit-volume line starts at minus €40,000 when zero units are sold. It crosses zero, break-even, at 1,600 units, €40,000 divided by €25. At 3,000 units, contribution of €75,000 less €40,000 fixed costs leaves €35,000 profit.

Where it fits

SubjectCost AccountingCoreTopicCost-Volume-Profit AnalysisCore

The formula

LaTeX

\pi = (cm \times x) - FC

Variables

$π$: Profit (or loss) (€)
$c m$: Contribution margin per unit (€)
$x$: Units sold (units)
$F C$: Fixed costs (€)

Gives the y-coordinate of the profit-volume line at any sales volume.

Check yourself

PracticeCORE

A product has fixed costs of €60,000 a month and a contribution margin of €15 per unit. Reading the profit-volume chart, what is the profit or loss when 3,000 units are sold?

Select an answer to check your understanding.