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Rate Volume Mix Calculator

Formula

The formulas to calculate the rate, volume, and mix impacts are:

$\text{Rate Impact} = (\text{Current Price} - \text{Previous Price}) \times \text{Previous Volume} \times \text{Previous Mix}$

$\text{Volume Impact} = (\text{Current Volume} - \text{Previous Volume}) \times \text{Previous Price} \times \text{Previous Mix}$

$\text{Mix Impact} = (\text{Current Mix} - \text{Previous Mix}) \times \text{Previous Price} \times \text{Previous Volume}$

Example

Let's say the current price is $10, the previous price is $8, the current volume is 1500 units, the previous volume is 1000 units, the current mix is 0.6, and the previous mix is 0.5. Using the formulas:

$\text{Rate Impact} = (10 - 8) \times 1000 \times 0.5 = 1000$

$\text{Volume Impact} = (1500 - 1000) \times 8 \times 0.5 = 2000$

$\text{Mix Impact} = (0.6 - 0.5) \times 8 \times 1000 = 800$

So, the rate impact is $1000, the volume impact is $2000, and the mix impact is $800.

What is Rate Volume Mix?

Rate Volume Mix (RVM) analysis is a method used to break down the changes in revenue or profit into three components: rate (price), volume, and mix. It helps businesses understand the impact of each factor on their financial performance.