Published Paper Details:

The cost volume profit (CVP) analysis is the most popular system for short run profit planning. The Return on sales (ROS)/ return on investment (ROI) are the techniques for long run profit planning and performance appraisal. The ROS & ROI are able to provide the assessment of profitability where as the CVP is limited to profit planning and not suitable for profitability analysis. Further the CVP confined to several assumptions of consistency and not suitable for planning under changing values of variables other than the volume. Further, though the ROS & ROI techniques are able to measure the effects of changes in all the variables they are unable to imply the effects of short run consistency effects of costs and price. Due to non availability of simplified applicable formulae the CVP Break-even analysis (BEA) is not suited for profitability i.e. planning in terms of ROS/ROI and ineffective for long run planning. The innovation of two sets of integrated formulae by the author has paved the way for providing the Profitability planning under CVP/BEA with the following derived additional formulae from the IPPPA tools. it has enabled to provide a fitted solution for profitability planning under CVP. The formulae were used to provide a ftted solution for the Case study of IIM Ahmadabad (IIMA/F&A0071 revised in 1968).