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Price and Volume Profit Scenario Grid

Compare operating profit across hypothetical prices and unit volumes with $30 variable cost and $10,000 fixed costs held constant.

By PriceAndProfit Editorial Updated

Every cell combines one price assumption with one quantity assumption. Moving right increases contribution per unit; moving down spreads unchanged fixed costs over more sales. The cells are alternative scenarios, not observations or probabilities. They should not be added together as though all outcomes happen in the same period.

Operating profit = units × (price − $30 variable cost) − $10,000 fixed costs
Hypothetical worked values; no market or statutory rates
Units soldPrice $45Price $50Price $55
500 −$2,500 $0 $2,500
750 $1,250 $5,000 $8,750
1,000 $5,000 $10,000 $15,000
1,250 $8,750 $15,000 $21,250

How to read and reuse this example

Before selecting a case, check whether the quantity is feasible at that price and within available stock, labor and fulfillment capacity. The table does not estimate a demand curve. If the higher volume requires another employee or warehouse, replace the $10,000 fixed-cost input for that case. If discounts affect percentage fees, variable cost must change as well.

Boundaries and exceptions

The zero-profit cell at 500 units and $50 is a continuous and whole-unit break-even point under these exact assumptions. It says nothing about collection timing or inventory purchases. Keep a separate cash schedule and test receipt delays. Use the grid to identify the assumption that needs evidence, not to promise a favorable outcome.

Method reference: OpenStax: Break-Even Points in Units and Dollars. Checked October 22, 2026. Contribution and cost-volume-profit relationships; examples are independently constructed.

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