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CVP Analysis Model

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I need to construct a CVP analysis model and include break-even point in sales and units for TJ Maxx (tjx). I don't understand how to use the given financial information to create a CVP analysis.

See link for financial data: http://markets.financialcontent.com/stocks/action/getedgarwindow?accesscode=95012311030274

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Solution Summary

I made a few assumptions, such as cost of sales is all variable, a typical situation for retailers, and that SG&A is all fixed (likely mostly but not all fixed but there isn't enough data to tease out the variable portion here). The sales in units are not given so I used "stores" as the units. Breakeven in sales and breakeven in # of stores is given for you in Excel with the procedure shown step-by-step.

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I made a few assumptions, such as cost of sales is all variable, a typical situation for retailers, ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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