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Equations.wps

Equations.wps - #2 Current VC New VC Reduction = VC 2 Then...

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-1Formulas: TC=TFC + TVC Net Profit= TR-TC Output × Price= TFC BEP = TFC / (P-VC) BEP in dollars = TFC / Contribution (as a decimal) At BEP TR = TC At BEP TR = TFC + TVC TVC / (units sold or produced) = VC per unit TR = Price × QTY (output) TR = Total Cost + Max Profit … for price per unit divide solution by QTY TC = (VC × QTY) + Max Profit Loss = TR - (TVC+ TFC) Quantity = (TFC + Desired Profit) / (P-VC) Net Profit= Contribution - TFC ) Pr ( ) ( ) Pr ( Unit Per ice Selling Unit Per VC Unit Per ice Selling Decimal a as n Contibutio - = Average Contribution = Contribution as a Decimal × (Total Sales / Total Expected Sales) Sales Expected Total on Contributi Avg Dollars in on Contributi × = .

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Additional Profit = Net Profit 1 - Net Profit 2 Comparison: #1 Current VC - New VC Reduction = VC 1
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Unformatted text preview: #2 Current VC- New VC Reduction = VC 2 Then Asset 1 Asset 2 Asset 1 FC + (VC1 × Indifference Point) = Asset 2 FC + (VC2 × Indifference Point ) Indifference point will be what we are looking for to determine at what point to purchase which asset. It will be a variable in which you solve for in this equation. Difference Formula Cost for Purchasing = Cost for Making Cost per Item × (x) = FC + VC × (x) … solve for x Use x from previous equation … (x) / Capacity = Percentage of Capacity Reduce Variable and Fixed Costs 1. QTY TFC TR C V / ) (-= ′ 2. TVC TR C F-= ′ Raise the Price ) / ( QTY FC VC P + = ′...
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Equations.wps - #2 Current VC New VC Reduction = VC 2 Then...

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