Bridgestone Behavioral Health Center: Cost-Volume-Profit (CVP) Analysis for Planning and Control

Bridgestone Behavioral Health Center: Cost-Volume-Profit (CVP) Analysis for Planning and Control

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  • Teaching Notes
  • Supplementary Resources
Abstract

The purpose of the case is to apply cost-volume-profit (analysis) in a service industry setting with multiple lines of service. The case emphasizes the use of CVP analysis for planning and control purposes. The executive director at Bridgestone Behavioral Health and Addiction Center is concerned about the Center’s financial performance. As a result, he would like to implement a methodology to plan, monitor, and control the Center’s financial performance. Students are encouraged to apply CVP analysis and to provide both an interpretation and strategy for monitoring the Center’s future performance.

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