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Ch. 2,3,4,6,8,9 Formulas

Ch. 2,3,4,6,8,9 Formulas - Management 368 Formula Sheet...

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Management 368 Formula Sheet Chapter 2 Formulas Productivity = Output / Input Improvements in Productivity: Method 1 = Current Period – Base Period Method 2 = (Current Period – Base Period) / Base Period Growth Rate = (P 2 – P 1 ) / P 1
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Management 368 Formula Sheet Chapter 3 Formulas Total Contribution to Profit = TR – TC Total Revenue (TR) = SP(Q) Total Cost = FC + (VC x Q) Quantity needed to Break Even (Q BE ) = F / (SP – VC) Variable Cost (VC) = SP – (F / Q) Selling Price (SP) = (F / Q) + VC
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Management 368 Formula Sheet Chapter 4 Formulas Total Cost of Outsourcing: TC Buy = FC Buy + (VC Buy x Q) Total Cost of Insourcing: TC Make = FC Make + (VC Make x Q) Indifference Point: FC Buy + (VC Buy x Q) = FC Make + (VC Make x Q) Quantity: (FC Buy – FC Make ) / (VC Make – VC Buy ) Or (FC Make – FC Buy ) / (VC Buy – VC Make ) Chapter 9 Formulas Load-Distance Model: Step 1 – Calculate rectilinear distance Step 2 – Identify Loads Step 3 – Calculate the Load-Distance Scores The Center-of-Gravity Approach: X c.g.
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