Sunday, October 17, 2010

Summarize section 2.3.1 including the influence chart



In Section 2.3.1 we look at a simple example of how to determine profitability.  In our example, our objective is profit.  Profit is directly affected by Total Revenue minus Total Cost.  Furthermore, in our example, cost is directly affected by a fixed cost (overhead), and also a variable cost.  The variable cost is affected by the quantity sold as well as the per unit cost.

No comments:

Post a Comment