Make real pricing and volume decisions for a small business over 5 rounds. Each round covers a core Cost-Volume-Profit concept. Try all four businesses and screenshot each results page!
Choose Your Business
🌮
Rosita's Taco Truck
Price $9 • VC $3.50 • FC $2,800/mo
👕
Pixel & Press Tees
Price $25 • VC $9 • FC $3,500/mo
☕
Grounds & Glory Kiosk
Price $5.50 • VC $1.75 • FC $2,200/mo
🔱
Ember & Wax Co.
Price $18 • VC $6 • FC $1,800/mo
Reference Sheet
📐 CVP Formula Sheet
Review these formulas before you start. You can reopen this sheet at any time during the simulation by clicking the 📐 Formulas button in the bottom-right corner.
Key Variables:P = Selling Price per unit | VC = Variable Cost per unit | FC = Total Fixed Costs | Q = Units Sold | CM = Contribution Margin | NOI = Net Operating Income
📊 Contribution Margin
Contribution Margin formulas
CM per Unit
CM = P − VC
CM Ratio
CM Ratio = CM per Unit ÷ P
Total CM
Total CM = Q × CM per Unit
VC Ratio
VC Ratio = 1 − CM Ratio
⚖ Break-Even Point
Break-Even Point formulas
Break-Even (units)
BEP = FC ÷ CM per Unit
Break-Even (sales $)
BEP = FC ÷ CM Ratio
NOI at any volume
NOI = (Q × CM per Unit) − FC
Using CM Ratio
NOI = (Sales $ × CM Ratio) − FC
🎯 Target Profit
Target Profit formulas
Required units
Q = (FC + Target Profit) ÷ CM per Unit
Required sales $
Sales $ = (FC + Target Profit) ÷ CM Ratio
🛡 Margin of Safety
Margin of Safety formulas
MOS in Units
MOS = Actual Units − BEP Units
MOS in Dollars
MOS $ = Actual Sales $ − BEP Sales $
MOS Percentage
MOS% = MOS Units ÷ Actual Units × 100
Interpretation
Higher MOS% = more cushion before losses begin
🔧 Operating Leverage
Operating Leverage formulas
Degree of Operating Leverage
DOL = Total CM ÷ Net Operating Income
Profit sensitivity
% Change in NOI = % Change in Sales × DOL
High DOL
More fixed costs → bigger profit swings
Low DOL
More variable costs → stable profit, lower risk
💡 Tip: During the simulation, your business’s Price, VC, FC, CM, and BEP are always shown in the left sidebar.
A scorecard PNG showing your name, business, and round scores will download automatically when you submit to Canvas. You can also download it again any time using the button below. Upload it to Canvas alongside your submission if required.
If you play all four businesses, each scorecard will show which business you used.