Unformatted text preview: - Increase/decrease in sales to current customers with current products - Increase/decrease in sales to current customers with new products - Increase/decrease in sales to new customers with current products - Increase/decrease in sales to new customers with new products • Cost - Portions which are fixed and variable - Time frames in which costs are avoidable - Allocation of costs to product, overheads etc. Note: changing volumes can wreak havoc on profitability when looked at from the perspective of fixed vs. variable costs. Be sure to understand what happens to fixed cost per unit when volume declines (it increases) and how this can affect profitability in capital intensive businesses. Click to buy NOW! P D F-X C ha ng e V ie w e r .d o cu-tr ac k .c m...
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- Spring '09
- Marketing, consumer demand elasticity, Consulting Association Guidebook, PROFIT EQUATION Simple, differentiation Sales volume